Alexander invested 320 in an account paying an interest rate of 1.5% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 18 years?

Solución

A l e x an d er in v es t e d 320 in an a cco u n t p a y in g an in t eres t r a t e o f 1.5% co m p o u n d e d ann u a ll y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t h u n d re d d o ll a rs, w o u l d b e in t h e a cco u n t a f t er 18 ye a rs ?

Amount : 418.35

Pasos de solución

Translate the problem into an equation:

A = 320 (1 + \frac{0.015}{1})^{1 \cdot 18}

320 (1 + \frac{0.015}{1})^{1 \cdot 18} = 418.34900 \dots

Redondear al más cercano hundredth:

418.35

Amount : 418.35