If an investment account starts with $3,900, and grows with 2.1% interest, compounded annually, how much is the account worth after 15 years

Question

If an investment account starts with $3,900, and grows with 2.1% interest, compounded annually, how much is the account worth after 15 years?

Round your answer to the nearest dollar.
Do NOT round until you have calculated the final answer.

Answer 5327

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King 1 year 2021-09-04T17:04:30+00:00 1 Answers 19 views 0

Answers ( )

    0
    2021-09-04T17:05:36+00:00

    Answer:

    $5327

    Step-by-step explanation:

    Use the formula for calculating compound interest

    A(t)=P(1+r/n)^n⋅t,

    where A(t) is the balance of the account, P is the principal, r is the annual interest rate (as a decimal), n is the number of times the interest is compounded each year, and t is the time (in years). We are given that P=$3,900, r=0.021, n=1, and t=15. Substituting the values into the formula and using a calculator to evaluate, we find

    A(t)=P(1+r/n)^n⋅t = $3,900(1+0.0211)^(15)(1) ≈ $5,326.61

    So the final answer is $5,327.

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