If C dollars are deposited in an account paying r percent annual interest, approximate the amount in the account after x years if C=$150, r= 1.9% and x=25 years
1.9%=(1.9)/100
i am not sure that there is an annual interest formula but it might be compounded interest where interest is compounded once a year.
the compound interest formula is A=p(1+r/n)^n*t where p is the principle r is the rate n is the compounding period t is the time and A is the future value.
n=1
r=(1.9)/100
p=150
t=25
we are solving for future value the expression is already solved for A so lets just substute in
A=150*(1+1.9*(1/100))^25
A=240.1296894
Jonathan I am not sure how you got your answer,,, did you multiply 150x1.017x25 I am just not sure how you got your answer could you help me a little more
amount = 150 (1.019)^25 = $ 240.13
To approximate the amount in the account after x years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the amount in the account after x years
P = the principal amount (initial deposit)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
In this case, C = $150 is the principal amount, r = 1.9% is the annual interest rate (which needs to be converted to decimal form by dividing by 100), and x = 25 years. The number of times interest is compounded per year is not given, so we'll assume it's compounded annually (n = 1).
Plugging these values into the formula:
A = 150(1 + 0.019/1)^(1*25)
Now, let's simplify this equation step by step:
Step 1: Convert the annual interest rate into decimal form:
r = 1.9% / 100 = 0.019
Step 2: Plug the values into the formula:
A = 150(1 + 0.019)^(25)
Step 3: Calculate the exponential term:
A = 150(1.019)^(25)
Step 4: Raise 1.019 to the power of 25:
A ≈ 150(1.019)^25
Step 5: Calculate the value inside the parentheses:
A ≈ 150(1.552633381)
Step 6: Multiply the principal amount by the value in step 5:
A ≈ $232.8941
So, after approximately 25 years, the amount in the account will be around $232.89.