Answered

Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

You are opening a savings account with $500 that you have saved. The bank offers 3.2% interest, compounded yearly. How much money will you have in you account after 7 years?

Sagot :

Ashraf82

Answer:

You will have $623.3441462 in your account after 7 years

Step-by-step explanation:

The formula of the compounded interest is A = P [tex](1+\frac{r}{n})^{nt}[/tex] , where

  • A is the new value
  • P is the initial value
  • r is the rate in decimal
  • n is the number of periods
  • t is the time in years

∵ You are opening a savings account with $500  

∴ P = 500

∵ The bank offers 3.2% interest, compounded yearly

∴ r = 3.2% ⇒ divide it by 100 to change it to decimal

∴ r = 3.2 ÷ 100 = 0.032

∵ The interest is compounded yearly

∴ n = 1

∵ The time is 7 years

∴ t = 7

→ Substitute these values in the rule above to find A

∵ A = 500 [tex](1+\frac{0.032}{1})^{1(7)}[/tex]

∴ A = 500 [tex](1.032)^{7}[/tex]

∴ A = 623.3441462

∴ You will have $623.3441462 in your account after 7 years

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for visiting Westonci.ca, your go-to source for reliable answers. Come back soon for more expert insights.