Question

Janice put $5823.00 into a savings account that pays 2.25% interest.If she leaves that money in the account for 4 years,how much will the balence of her account be?

Answer 1

Given:

Principal value = $5823.00

Rate of interest = 2.25%

Time = 4 years

To find:

The amount in the account after 4 years.

Solution:

The formula for amount is

$A=P\left(1+\dfrac{r}{100}\right)^t$

where, P is principal, r is rate of interest and t is time period.

Putting P=5823, r=2.25 and t=4 in the above formula.

$A=5823\left(1+\dfrac{2.25}{100}\right)^4$

$A=5823\left(1+0.0225\right)^4$

$A=5823\left(1.0225\right)^4$

$A=5823(1.0930833)$

$A=6365.0240559$

$A\approx 6365.024$

Therefore, the amount in the according after 4 years is about $6365.024.