Question

2900 dollars is placed in an account with an annual interest rate of 9%. How much
will be in the account after 13 years, to the nearest cent?

Answer 1

To find interest, we multiply principle (2900) by interest (9%) by time (13years).
9% needs to be a number, so we move the decimal two spaces to the left- .09
2900(.09)(13)
3393–this is the interest
In total, in the account there would be 6,293

Answer 2

Answer:

$A = 2900 (1+ \frac{0.09}{1})^{1*13}= 8890.83$

And the value after 13 years would be $8890.83.

Step-by-step explanation:

For this case we assume that we can use the compound interest formula given by:

$A = P(1+ \frac{r}{n})^{nt}$

Where:

A= represent the future value

P = represent the present value

r= the interest rate on fraction

n= number of times that the interest is effective in a year

For this case we have the following info:

P=2900$, r= 0.09, n = 1 (since it's annual) and t =13 years

We want to find the value of A and if we replace we got:

$A = 2900 (1+ \frac{0.09}{1})^{1*13}= 8890.83$

And the value after 13 years would be $8890.83.

And the amount of interest earned would be: 8890.83-2900=$5990.833