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Valentin [98]
2 years ago
12

Suppose that $3500 is placed in an account that pays 2% interest compounded each year. Assume that no withdrawals are made from

the account.
Follow the instructions below. Do not do any rounding.

(a) Find the amount in the account at the end of year 1.
$?

(b) Find the amount in the account at the end of year 2.
$?
Mathematics
1 answer:
Burka [1]2 years ago
7 0
1% of $3500 is $35

Double that means

2% is $70

So first year would be $3570

Now

1% of $3570 is $35.70
2% is $71.40

So second year would be

$3641.40
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