Ava puts $400.00 into an account to use for school expenses. The account earns 12percent interest, compuonded annualy. How much will be in the account after 9 years?

Question

Darryl Chan

Mathematics

24 September, 05:22

Ava puts $400.00 into an account to use for school expenses. The account earns 12percent interest, compuonded annualy. How much will be in the account after 9 years?

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Answers (1)

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Dennis Good · Answer 1

Answer:$1109.23 will be in the account after 9 years

Step-by-step explanation:

Initial amount deposited into the account is $400 This means that the principal

P = 400

It was compounded annually. This means that it was compounded once in a year. So

n = 1

The rate at which the principal was compounded is 12%. So

r = 12/100 = 0.12

It was compounded for 9 years. So

n = 9

The formula for compound interest is

A = P (1+r/n) ^nt

A = total amount in the account at the end of t years. Therefore

A = 400 (1+0.12/1) ^1*9

A = 400 (1.12) ^9 = 1109.23$