Question

2. You put $3,800 dollars in a savings account. The bank will provide 1.8% interest every year. Write and solve a model that describes how much money will be in the account in 15 years.

Answer 1

The money that will be in her account in 15 years is $4965.84

Explanation:

Given data

Principal p= $3800

rate r= 1.8% - - - - - - 1.8/100=0.018

Time t= 15 years

Final amount A=?

The model that describes the e amount in the account is the compound interest model

A = P(1 + r)^t

Substituting our given data into this model we have

A= 3800(1+0.018)^1 5

A=3800(1.018)^15

A=3800*1.3068

A= $4965.84