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Popular Word Problems >

Jenna put 4,000 in a retirement account that offers 7% interest compounded annually. She makes no additional deposits or withdrawals. How much interest will she have earned at the end of 5 years?

Solución

J e nna p u t 4, 000 in a re t i re m e n t a cco u n t t ha t o ff ers 7% in t eres t co m p o u n d e d ann u a ll y . S h e mak es n o a dd i t i o na l d e p os i t s or w i t h d r a w a l s . Ho w m u c h in t eres t w i ll s h e ha v e e a r n e d a t t h e e n d o f 5 ye a rs ?

Solución

Interest : 1610.21

Pasos de solución

Translate the problem into an equation:

5610.20692 \dots = 4000 + I

Resolver para

I, 5610.20692 \dots = 4000 + I : I = 1610.21

Interest : 1610.21

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