Sarah had invested $800 in a savings account that paid 4.2% interest compounded annually. How much money was in the account afte
1 answer:
Answer: $943.11
<u>Step-by-step explanation:</u>
Compound Interest formula is: 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
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<h3>Answer: Choice E</h3>
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Explanation:
Think of 25 as 25/1 and 5 as 5/1
Choice E is really saying which becomes
. Note the second fraction flips and we change to a multiplication sign.
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Or you could think of it like this:
to help see why the answer is E.