Question

Mei Mei invested $1700 in an account that pays 3% interest compounded annually.
Assuming no deposits or withdrawals are made, find how much money Mei Mei
would have in the account 16 years after her initial investment. Round to the nearest
tenth (if necessary).

Answer 1

Answer:

$2728

Step-by-step explanation:

Use compound interest formula:

$A = P(1 + \frac{r}{n})^{nt}$

P = 1700, r = 0.03, n = 1, t = 16

Plug in numbers:

$A = 1700(1 + \frac{0.03}{1})^{(1)(16)}$

Simplify:

$A = 1700(1.3)^{16$

Use calculator:

$A = 2728$