Question

Please help!

Jamal deposited $4,253 in a savings account earning 1% interest, compounded annually.

To the nearest cent, how much will he have in 4 years?

Use the formula B = p(1 + r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Answer 1

4425.7

Explanation:

Answer 2

He will have $4425.69 in 4 years

Explanation:

Notice that the principal p = $4253

The interest (1%) in mathematical terms is given by: 0.01

the time t = 4 years

therefore the formula for these values becomes:

`B=p(1+r)^t\\B=4253\,(1+0.01)^4\\B=4253\,(1.01)^4\\B=4425.68885`

Which rounded to the decimal place gives:

$4425.69