Lucy invested 19,000 in an account paying an interest rate of 3% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 8 years

Solution

Lucy invested 19, 000 in an account paying an interest rate of 3% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 8 years

Solution

Amount : 24068.63

Solution steps

Translate the problem into an equation:

A = 19000 (1 + \frac{0.03}{1})^{1 \cdot 8}

19000 (1 + \frac{0.03}{1})^{1 \cdot 8} = 24068.63154 \dots

Round to the nearest hundredth:

24068.63

Amount : 24068.63

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