Question

Kaylee invested $910 in an account paying an interest rate of 2.6% compounded

Answer 1

Answer:

$1,179

Step-by-step explanation:

Lets use the compound interest formula provided to solve this:

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

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, lets change 2.6% into a decimal:

2.6% -> $\frac{2.6}{100}$ -> 0.026

Since the interest is compounded quarterly, we will use 4 for n. Lets plug in the values now:

$A=910(1+\frac{0.026}{4})^{4(10)}$

$A=1,179.21$

The account balance after 10 years will be $1,179