Ay-Jiuan deposits $700 into a savings account that pays %2 interest compounded annually. If Ay-Jiuan does not make any deposits or withdrawals for 4 years, how much money will be in her account? Round to the nearest cent.
To solve this problem, we can use the formula:
A = P(1 + r/n)^(nt)
where:
A = the amount of money in the account after t years
P = the initial deposit ($700)
r = the annual interest rate (2%, or 0.02 as a decimal)
n = the number of times the interest is compounded per year (in this case, annually)
t = the number of years
Plugging in the values, we get:
A = 700(1 + 0.02/1)^(1*4)
A = 700(1.02)^4
A = 700(1.082432)
A = 758.70 (rounded to the nearest cent)
Therefore, Ay-Jiuan will have approximately $758.70 in her account after 4 years.
To calculate the amount of money that will be in Ay-Jiuan's account after 4 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Total amount of money in the account after time t
P = Principal amount (initial deposit)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years
In this case, Ay-Jiuan deposited $700 into a savings account with a 2% interest rate, compounded annually. Therefore:
P = $700
r = 0.02
n = 1 (since the interest is compounded annually)
t = 4
Plugging these values into the formula, we get:
A = 700(1 + 0.02/1)^(1*4)
A = 700(1 + 0.02)^4
A = 700(1.02)^4
Calculating this expression, we find:
A ≈ 740.06
Therefore, after 4 years, there will be approximately $740.06 in Ay-Jiuan's account.
To calculate the amount of money in Ay-Jiuan's savings account after 4 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/amount in the account
P = the principal amount (initial deposit)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
In this case, Ay-Jiuan deposited $700 (P = $700), the interest rate is 2% (r = 0.02), the interest is compounded annually (n = 1), and the time period is 4 years (t = 4).
Now we can substitute these values into the formula and calculate the future value (A):
A = $700(1 + 0.02/1)^(1*4)
A = $700(1 + 0.02)^4
A = $700(1.02)^4
Now we can solve this equation to find the future value of Ay-Jiuan's savings account after 4 years:
A = $700(1.02)^4
A ≈ $700 * 1.0824
A ≈ $758.68
Therefore, after 4 years, there will be approximately $758.68 in Ay-Jiuan's savings account.