Question

Kiera puts 1,000.00 into an account to use for school expenses the account earns 13%interest compounded annually how much will be in the account after 4 years

Answer 1

The amount kiera put into the account is 1000.00

Rate of interest is 13%

Time period is 4 years

Compound interest is calulated annully

The expression for thr compound interest is

$\text{Amount}=P(1+\frac{r}{n})^{t\times n}$

From the given data, we have

P=1000, n=1, t=4 and r=13% or r=0.13

Substitute this value to find the net amount

$\begin{gathered} \text{Amount}=1000(1+\frac{0.13}{1})^{4\times1} \\ \text{Amount}=1000(1.13)^4 \\ Amount=1000(1.630) \\ \text{Amount}=1630 \end{gathered}$

The net amount Kiera have in her account is 1630.