Ezra opened a savings account and deposited 400.00 as principal. The account earns 2% interest, compounded annually. What is the balance after 10 years?

Solution

Solution

Amount : 487.6

Solution steps

Translate the problem into an equation:

A = 400 (1 + \frac{0.02}{1})^{1 \cdot 10}

400 (1 + \frac{0.02}{1})^{1 \cdot 10} = 487.59776 \dots

Round to the nearest hundredth:

487.6

Amount : 487.6

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