Find the final amount of money in an account if $2,600 is deposited at 5% interest compounded annually and the money is left for 9 years.
The final amount is $
Round answer to 2 decimal places
recall your formula
A = P(1+r)^n
Now plug in your numbers
Would it be 23,508
2600 * 1.05^9 = 4033.45
what formula did you use? Not the one I gave you ...
To find the final amount of money in the account, we need to use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A is the final amount of money
P is the principal (initial deposit)
r is the annual interest rate
n is the number of times the interest is compounded per year
t is the number of years
In this case, the principal (P) is $2,600, the annual interest rate (r) is 5% (or 0.05 as a decimal), the interest is compounded annually (n = 1), and the money is left for 9 years (t = 9).
Plugging in these values into the formula:
A = 2600(1 + 0.05/1)^(1*9)
A = 2600(1 + 0.05)^9
A = 2600(1.05)^9
A ≈ $4,224.37 (rounded to 2 decimal places)
Therefore, the final amount of money in the account after 9 years is approximately $4,224.37.