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Butoxors [25]
3 years ago
10

Calculate annually compounded interest

Mathematics
1 answer:
Hunter-Best [27]3 years ago
3 0

Answer:

$2,851.80

Step-by-step explanation:

Lets use the compound interest formula to solve:

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

<em>P = initial balance</em>

<em>r = interest rate (decimal)</em>

<em>n = number of times compounded annually</em>

<em>t = time</em>

First, change 1.1% into a decimal:

1.1% -> \frac{1.1}{100} -> 0.011

Next, plug the values into the equation:

A=2,700(1+\frac{0.011}{1})^{1(5)}

A=2,851.80

She will have $2,851.80 after 5 years.

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Step-by-step explanation:

A company is designing a new cylindrical water bottle.

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