Question

A principal of 5350 is placed in an account that earns 3.5% interest. If the interest is compounded annually, how much money will be in the account at the end of 4 years

Answer 1

5350 x 3.5% = 187.25

187.25 is compounded per year

187.25 x 4 = 749.00 is the interest after 4 years

749.00 + 5,350 = 6,099

6,099 will be in the account at the end of 4 years.