Neil opened a savings account and deposited 200.00 as principal. The account earns 9% interest, compounded annually. What is the balance after 5 years?Round your answer to the nearest cent.

Solution

Solution

Amount : 307.72

Solution steps

Translate the problem into an equation:

A = 200 (1 + \frac{0.09}{1})^{1 \cdot 5}

200 (1 + \frac{0.09}{1})^{1 \cdot 5} = 307.72479 \dots

Round to the nearest hundredth:

307.72

Amount : 307.72

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