Question

Your allowance of $190 got 11% compounded annually for 4 years. What’s it worth after the 4 years?

Answer 1

$\text{Use the compound interest formula:}\\\\A=P(1+i)^n\\\\\text{Plug in your values:}\\\\A=190(1+0.11)^4\\\\\text{Solve:}\\\\A=190(1+0.11)^4\\\\A=190(1.11)^4\\\\A=190(1.51807041)\\\\A=288.433\\\\\text{Round to the nearest hundredths}\\\\A=288.43\\\\\boxed{\ 288.43}$