Question

Sue deposited $2,450 in an account for 12 years at an interest rate of 3% compounded annually.
How much is in her account after the 12 years?

Answer 1

Answer:

$3493.11

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:

$T = 2450(1 + \frac{3}{100})^{12}$

T = $3493.11 (nearest cent)