Question

8300 dollars is placed in an account with an annual interest rate of 6.5%. How much will be in the account after 14 years, to the nearest cent?

Answer 1

The answer is $20,043

Answer 2

To calculate the amount in the account after 14 years, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the amount of money accumulated after n years, including interest
P = the principal amount (initial deposit)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested for

In this case, P = $8300, r = 0.065, n = 1 (compounded annually), and t = 14.

Plugging these values into the formula, we get:

A = 8300(1 + 0.065/1)^(1*14)
A = 8300(1.065)^14
A = 8300(2.428988)
A = 20136.06

Therefore, after 14 years, there will be approximately $20,136.06 in the account.

Answer 3

I apologize for the error in my calculation. Let's correct it:

A = 8300(1 + 0.065)^14
A = 8300(1.065)^14
A = 8300(2.417625)
A = $20,043.78

Therefore, after 14 years, there will be approximately $20,043.78 in the account. Thank you for pointing out the mistake.