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2 votes
Lily invested $1600 in an account that pays 4.75% interest compounded annually.

Assuming no deposits or withdrawals are made, find how much money Lily would
have in the account 10 years after her initial investment. Round to the nearest tenth
(if necessary).

2 Answers

3 votes

Answer:

$ 2,544.84

Explanation:

A = $ 2,544.84

A = P + I where

P (principal) = $ 1,600.00

I (interest) = $ 944.84

Compound Interest Equation

A = P(1 + r/n)^nt

Where:

A = Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

R = Annual Nominal Interest Rate in percent

r = Annual Nominal Interest Rate as a decimal

r = R/100

t = Time Involved in years, 0.5 years is calculated as 6 months, etc.

n = number of compounding periods per unit t; at the END of each period

User Pierrick HYMBERT
by
3.8k points
2 votes

Answer:

3688.9

Explanation:

User Sergi Nadal
by
3.6k points