Question

Isabelle deposited $4,020 in a savings account earning 13% interest, compounded annually.To the nearest cent, how much will she have in 4 years?

Answer 1

Solution

For this case we can use the following formula:

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

Where P= 4020, r= 0.13 and n = 1, t= 4 years

Then we can replace and we got:

$A=4020(1+\frac{0.13}{1})^{1\cdot4}=6554.50$

Rounded to the nearest cent would be:

A= 6554.50$

Part 2

For this case we can use this formula:

P= Po (1+r)^t

Where Po = 174300, r= 0.15 and t= 9 years

We can replace and we got:

P= 174300 (1+0.15)^9 =613165.8

Then the answer would be 613165.8 tons