Suppose that 7, 000 is placed in an account that pays 12% interest compounded each year.Assume that no withdrawals are made from the account. find the amount in the account at the end of 2 year.

Solution

Solution

Amount : 8780.8

Solution steps

Translate the problem into an equation:

A = 7000 (1 + \frac{0.12}{1})^{1 \cdot 2}

7000 (1 + \frac{0.12}{1})^{1 \cdot 2} = 8780.8

Amount : 8780.8

Popular Examples

eight less than a number is less than 10.If you are buying at item at a store for a price of 66, and there is a 5.1% tax added on top, what would be the total amount due at the register, to the nearest cent?9 less than a number is equal to 14.A triangle has a base of 13 inches and a height of 10 inches. What is the area?Three consecutive integers have a sum of 54. Find the integers.