Samuel puts 800.00 into an account to use for school expenses. The account earns 11% interest, compounded annually. How much will be in the account after 4 years?Round your answer to the nearest cent.

Solución

S am u e l p u t s 800.00 in t o an a cco u n t t o u se f or sc h oo l e x p e n ses . T h e a cco u n t e a r n s 11% in t eres t, co m p o u n d e d ann u a ll y . Ho w m u c h w i ll b e in t h e a cco u n t a f t er 4 ye a rs ? R o u n d yo u r an s w er t o t h e n e a res t ce n t .

Amount : 1214.46

Pasos de solución

Translate the problem into an equation:

A = 800 (1 + \frac{0.11}{1})^{1 \cdot 4}

800 (1 + \frac{0.11}{1})^{1 \cdot 4} = 1214.456328

Redondear al más cercano hundredth:

1214.46

Amount : 1214.46