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8_murik_8 [283]
2 years ago
6

You invest $2,000 in an account that has an annual interest rate of 3.2%, compounded annually. How much money will be in the acc

ount after 12 years? Round your answer to the nearest whole number.
Mathematics
1 answer:
MissTica2 years ago
3 0
P = 2000 is the amount invested
r = 0.032 is the decimal form of 3.2%, which is the interest rate
n = 1 indicates we compound 1 time a year (compound annually)
t = 12 is the number of years

Those four values are plugged into the formula below
A = P*(1+r/n)^(n*t)
A = 2000*(1+0.032/1)^(1*12)
A = 2918.6792
A = 2919

Rounded to the nearest whole dollar, you'll have about $2919 in the account
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