Alexander invested 240 in an account paying an interest rate of 2.3% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 9 years?

Solution

Solution

Amount : 294.5

Solution steps

Translate the problem into an equation:

A = 240 (1 + \frac{0.023}{1})^{1 \cdot 9}

240 (1 + \frac{0.023}{1})^{1 \cdot 9} = 294.50450 \dots

Round to the nearest hundredth:

294.5

Amount : 294.5

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