Question

2. An account is opened with $28000 earning12% interest compounded yearly. What is thebalance in the account after 4 years?

Answer 1

The principal is $28000 with rate 12% compounded yearly .

To determine the balance after 4 years,

$SI=\frac{P\times R\times T}{100}$$SI=\frac{28000\times12\times4}{100}$$SI=13440$

The balance in the account after 4 years is the sum of principal and simple interest.

$A=\text{ 28000}+13440$$A=41440$

Thus, the balance in the account after 4 years is 41440 dollar.