To solve this problem, we can use the formula:
A = P(1 + r/n)^(nt)
where:
A = the amount of money in the account after t years
P = the initial deposit ($700)
r = the annual interest rate (2%, or 0.02 as a decimal)
n = the number of times the interest is compounded per year (in this case, annually)
t = the number of years
Plugging in the values, we get:
A = 700(1 + 0.02/1)^(1*4)
A = 700(1.02)^4
A = 700(1.082432)
A = 758.70 (rounded to the nearest cent)
Therefore, Ay-Jiuan will have approximately $758.70 in her account after 4 years.
Ay-Jiuan deposits $700 into a savings account that pays %2 interest compounded annually. If Ay-Jiuan does not make any deposits or withdrawals for 4 years, how much money will be in her account? Round to the nearest cent.
1 answer
1 answer