187k views
2 votes
Interest Practice

How much would x dollars earn in 1 year at a rate of 4.4% compounded annually?

User Genna
by
3.8k points

1 Answer

5 votes

Answer:

x1.044 - x

Step-by-step explanation:

The formula for calculating compound interest is as below

FV = PV × (1+r)^n

where FV = Future Value

PV = Present Value

r = annual interest rate

n = number of periods

How much would x dollars earn in 1 year at a rate of 4.4% compounded annually?

In this case, PV =X, r =4.4% and n=1

FV = x x ( 1+4.4/100)^1

Fv = x x( 1.044)^1

Fv = x1.044

x dollars will earn x1.044 - x

User DonkeyMaster
by
4.2k points