Question

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?

Answer 1

Answer:

295

Step-by-step explanation:

Answer 2

After 9 years, Alexander will have $295 in his bank account.

What is a compound interest?

This is a type of interest that is compounded after time period it is said to be compounded. After that particular period, the interest is calculated and then added with the principle. For the next duration, the interest is calculated on the sum.

Here, to find the amount of money after n years, we need to use the formula S = P(1 + r)ⁿ.

For Alexander, S = sum of money after the total period of investment.

P = Principle = $240, r = rate of interest = 2.3% compounded annually, n = time period = 9 years.

Now, S = $240(1 + 2.3/100)⁹= $240(1 + 0.023)⁹ = $240(1.023)⁹ = $294.5

≈ $295

Hence, after 9 years, Alexander will have $295 in his bank account.

Learn more about compound interest here: brainly.com/question/25857212

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