you deposit $ 900 in a savings account that earns 4%interest coumpounded once a year and has no service charges. you donot make any deposits or withdrawals to the account for two years. at the end of two years, after the second year's interest has been added to the account by the bank, how much money will be in the account?
A $908.00
B $936.00
C $954.54
D $973.44
D. 973.44
because 900* .04= 36
36+900= 936
and
936*.04= 37.44
37.44+ 936= 973.44
beacuse 4% in decimal form is .04 and 4% is earned each year hope this helps!
To find out how much money will be in the account at the end of two years, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount in the account
P = the principal amount (initial deposit)
r = annual interest rate in decimal form
n = number of times the interest is compounded per year
t = number of years
Given:
P = $900
r = 4% = 0.04
n = 1 (compounded once a year)
t = 2 years
Plugging these values into the formula:
A = 900(1 + 0.04/1)^(1*2)
A = 900(1 + 0.04)^2
A = 900(1.04)^2
A = 900(1.0816)
A ≈ $972.44
Therefore, at the end of two years, the amount of money in the account will be approximately $972.44.
To answer this question, we need to understand how compound interest works. Compound interest is when interest is earned on both the initial deposit and any previously earned interest.
In this case, the initial deposit is $900, and the interest rate is 4% compounded once a year.
To calculate the amount of money in the account after two years, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = the future value of the account
P = the principal amount (initial deposit)
r = the annual interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years
Let's plug in the values:
P = $900
r = 4% = 0.04 (in decimal form)
n = 1 (compounded once a year)
t = 2 years
A = 900(1 + 0.04/1)^(1*2)
A = 900(1 + 0.04)^2
A = 900(1.04)^2
A = 900(1.0816)
A ≈ $972.44
Therefore, the correct answer is D: $973.44.
You would want to set up a porportion.
4 x
------ = -------
100 900
So then your going to cross multiply.
4x900=3600 Then your going to divide by the remaining number.
3600/100=36.
so then your going to take 36 and x it by 2. Then add that number too 900.
You should get $972 if you the equation right.
Hope that helps.