Alexander invested 320 in an account paying an interest rate of 1.5% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 18 years?

Solution

Solution

Amount : 418.35

Solution steps

Translate the problem into an equation:

A = 320 (1 + \frac{0.015}{1})^{1 \cdot 18}

320 (1 + \frac{0.015}{1})^{1 \cdot 18} = 418.34900 \dots

Round to the nearest hundredth:

418.35

Amount : 418.35

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