Question

2200 dollars is placed in an account with an annual interest rate of 7.25%. How much

Answer 1

Answer:

$A =2200 (1+\frac{0.0725}{1})^{1*29}= 16747.29$

Step-by-step explanation:

For this case we assume that we can use the compound interest formula given by:

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

Where:

A= represent the future value

P = represent the present value

r = the interest rate on fraction

n = number of time that the interest is effective in a year

So for this case we know the following info:

P = 2200$, r = 0.0725 , n =1 (since it's annual) and t =29. We want to find the value for A, so we just need to replace like this:

$A =2200 (1+\frac{0.0725}{1})^{1*29}= 16747.29$

And that would be the amount after 29 years with the rate assumed.

Answer 2

Answer:

A  = $2200(7.612) = $16,747.28

Step-by-step explanation:

You don't say whether this is simple interest or compound interest.  I will assume you meant compound interest, for which the appropriate formula is

A = P(1 + r)^t, where P is the principal amount, r is the interest rate as a decimal fraction, and t is the time in years.  Then:

A = $2200(1 + 0.0725)^29, or

A = $2200(1.0725)^29, or

A  = $2200(7.612) = $16,747.28