Question

Jeremiah has $1,000 in a savings account that earns 10% interest, compounded annually.To the nearest cent, how much will he have in 4 years?$

Answer 1

Given data:

The given initial amount is P=$1,000.

The given rate of interest is r=10%.

The given time is t=4 years.

The expression for the final amount after 4 years is,

$A=P(1+\frac{r}{100})^t$

Substitute the given values in the above expression.

$\begin{gathered} A=(1000)(1+\frac{10}{100})^4 \\ =1000(1.1)^4 \\ =1464.10 \end{gathered}$

Thus, the final amount after 4 years is $1464.10.