Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Join our platform to connect with experts ready to provide precise answers to your questions in different areas. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Camden invested $1400 in an account that pays 4.5% interest compounded annually Assuming no deposits or withdrawals are made, find how much money Camden would have in the account 12 years after his initial investment. Round to the nearest tenth ( if necessary)

Sagot :

Lanuel

The amount of money Camden would have in his account after 12 years is equal to $2,374.3.

How to calculate compound interest.

To calculate how much money Camden would have in his account after 12 years, we would use the formula for compound interest.

Mathematically, compound interest is given by this formula:

[tex]A=P(1+r)^t[/tex]

Where:

  • A is the balance.
  • P is the principal or starting amount.
  • R is the interest rate.
  • T is the time measured in years.

Given the following data:

Principal = $1400.

Interest rate = 4.5% = 0.045.

Time = 12 year.

Substituting the given parameters into the formula, we have;

[tex]A=1400(1+0.045)^{12}\\\\A=1400(1.6959)[/tex]

A = $2,374.3.

Read more on interest here: brainly.com/question/24341207

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.