If the APY of a savings account is 2.4% and if the principal in the savings account is $2200 for an entire year, what will be the balance of the savings account after all the interest is paid for the year? A. $2200 B. $2252.80 C. $2300 D. $2205.28

Question

Pete

Mathematics

5 November, 01:36

If the APY of a savings account is 2.4% and if the principal in the savings account is $2200 for an entire year, what will be the balance of the savings account after all the interest is paid for the year? A. $2200 B. $2252.80 C. $2300 D. $2205.28

+5

Answers (1)

Know the Answer?

Kelton · Answer 1

To solve this problem, we must recall that the formula for money with compound interest is calculated as:

Total = Principal * (1 + Rate) ^ n

Total = $2,200 * (1 + 0.024) ^ 1

Total = $2,252.80

Therefore the answer is letter B.