Ellen puts 1,000.00 into an account to use for school expenses. The account earns 10% interest, compounded annually. How much will be in the account after 4 years?Round your answer to the nearest cent.

Solution

Ellen puts 1, 000.00 into an account to use for school expenses. The account earns 10% interest, compounded annually. How much will be in the account after 4 years?Round your answer to the nearest cent.

Solution

Amount : 1464.1

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.1}{1})^{1 \cdot 4}

1000 (1 + \frac{0.1}{1})^{1 \cdot 4} = 1464.1

Amount : 1464.1

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