Question

Josslyn placed $4400 in a savings account which earns 3.2% interest, compounded continuously. How much will she have in the account after 8 years? Round your answer to the nearest dollar. Do NOT round until you have calculated the final answer.

Answer 1

The initial amoud on her savings is $4400, so now we can calculate the interest that she generate in one year:

$4400\cdot\frac{3.2}{100}=140.8$

so in 8 year is going to be:

$140.8\cdot8=1126.4$

So the total amoud will be the initial amound plus the interest she earn so:

$4400+1126.4=5526.4$

and rounded would be like:

$5526\text{ dollars}$