Question

Sarah had invested $800 in a savings account that paid 4.2% interest compounded annually. How much money was in the account after 4 years, if he left the money untouched?​

Answer 1

Answer:  $943.11

Step-by-step explanation:

Compound Interest formula is:   $A=P(1+r)^t$     where

• A is the Accrued amount (total earned)
• P is the Principal (amount initially invested)
• r is the interest Rate (convert percent to a decimal)
• t is the Time (number of years)

It is given that; P = 800    r = 4.2% (0.042)       t = 4

A = 800(1 + 0.042)⁴

A = 800(1.042)⁴

A = 943.106   →   A = 943.11 (rounded to the nearest penny)

Sarah invested $800 for four years at an interest rate of 4.2% and accrued $943.11