Question

Dave deposited $9114 in a savings account earning 7 1/2% interest , compounded annually, to the nearest cent how much will he have in 2 years?

Answer 1

Answer:

$10 532.37

Step-by-step explanation:

The Total amount after a compound interest can be calculated using the formula:

$T = P(1 + \frac{R}{100})^{n}$

where P is the amount of deposit, R is the rate of interest, n is the duration.

Hence by substituting the values, we get:

$T = 9114(1 + \frac{7.5}{100} )^{2}$

T = $10 532.37 (nearest cent)