Jerry starts with $1400 in a college savings account. His account earns interest at a rate of 2.7% compounded annually. How much

Question

Jerry starts with $1400 in a college savings account. His account earns interest at a rate of 2.7%

compounded annually. How much money is in the account after 7 years?

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Doris 4 years 2021-08-13T07:50:41+00:00 1 Answers 11 views 0

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  1. Vodka
    0
    2021-08-13T07:51:57+00:00
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    Answer: There will be $ 1687.02 in the account after 7 years.

    Step-by-step explanation:

    Formula to find the accumulated amount (A) in account on principal amount (P) with rate of interest (r) in ‘t’ years is given by :-

    A=P(1+r)^t

    As per given, P =  $1400

    r= 2.7% = 0.027

    t= 7 years

    Then,

    A= 1400(1+0.027)^7\\\\= 1400(1.027)^7\\\\= 1400(1.2050168)\\\\= 1400(1.2050168)\approx1687.02

    Hence, there will be $ 1687.02 in the account after 7 years.

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