Suppose you deposit $1,000 in a savings account that pays interest at an annual rate of 4%. If no money is added or withdrawn from the account, answer the following questions.

Question

a. After 3 years, the amount in the account will be $
. (Do not round until the final answer. Then round to the nearest cent as needed)

b. After 17 years, the amount in the account will be $
. (Do not round until the final answer. Then round to the nearest cent as needed)

c. For the account to contain $1,500, it will take
years. (Type a whole number).

d. For the account to contain $2,000 it will take
years. (Type a whole number).

Answer 1

a. After 3 years, the amount in the account will be $1,124.86

b. After 17 years, the amount in the account will be $1,857.17

c. For the account to contain $1,500, it will take 20 years. (Type a whole number).

d. For the account to contain $2,000 it will take 29 years. (Type a whole number).