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 $ Incorrect. Round answer to 2 decimal places
What’s the answerrr?
Use your primary formula, this is the simplest kind of question for this topic.
amount = 2600(1.05)^9
= ...
see your earlier post, and use the formula I gave you there.
To find the final amount of money in the account, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount of money
P = the principal amount (initial deposit)
r = the annual interest rate (expressed as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
In this case, the principal amount (P) is $2,600, the annual interest rate (r) is 5% (or 0.05 as a decimal), the money is compounded annually (n = 1), and the money is left for 9 years (t = 9).
Plugging these values into the formula, we get:
A = 2600(1 + 0.05/1)^(1*9)
Simplifying this equation, we get:
A = 2600(1 + 0.05)^9
Using a calculator, we find that (1 + 0.05)^9 is approximately 1.62889.
Plugging this value back into the equation, we get:
A = 2600 * 1.62889
Calculating this, we find:
A ≈ $4,233.33
Rounded to 2 decimal places, the final amount in the account is approximately $4,233.33.