Anne invented 1000 in an account with a 1.3% annual interest rate she made no deposits or withdrawals on the account for 2 years if interest was compounded annually which equation represents the balance in the account after 2 years

Respuesta :

Answer:

Part a) The equation that represent the balance in the account after 2 years is equal to

[tex]\$1,000(1+\frac{0.013}{1})^{1*2}[/tex]

Part b) The balance in the account after 2 years is equal to [tex]\$1,026.17[/tex]

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

[tex]t=2\ years\\ P=\$1,000\\ r=0.013\\n=1[/tex]  

substitute in the formula above  

[tex]A=\$1,000(1+\frac{0.013}{1})^{1*2}[/tex]   ----> equation that represent the balance in the account after 2 years

[tex]A=\$1,000(1+\frac{0.013}{1})^{1*2}=\$1,026.17[/tex]

ACCESS MORE
EDU ACCESS