Question

Using the formula: A=p(1+r)t How much money will Mario have if he puts $1000 in a savings account earning 4% annually after 10 years? Select one: a. $1428.24 b. $1004 c. $1000 d. $2156.01

Answer 1

Answer: a. $1428.24

Step-by-step explanation:

Given formula : $A=P(1+r)^t$ , where P is initial amount inveted , r is rate of interest ( in decimal) and A is the compound amount at the end of t years.

If  Mario puts $1000 in a savings account earning 4%(4% = 0.04 in decimal ) annually after 10 years, then substitute P=1000 ; r= 0.04 and t=10 in the given formula , we get

$A=1000(1+0.04)^{10}=1000(1.04)^{10}=1480.24428492\approx1480.24$

Hence, the amount he will get after 10 years = $1428.24

Answer 2

Answer:

The amount is $1480.24

Step-by-step explanation:

We are given

he puts $1000 in a savings account earning 4% annually after 10 years

so,

P=1000

r=4%=0.04

t=10

now, we can use formula

$A=P(1+r)^t$

now, we can plug values

$A=1000(1+0.04)^{10}$

$A=1480.24428$

So,

The amount is $1480.24