Question

3400 dollars is placed in an account with an annual interest rate of 8.25%. How much will be in the account after 25 years, to the nearest cent?

Answer 1

$A = S(1+r)^{t}$ is the formula for an annual interest rate.

A = the future amount
S =  initial amount
r = rate of interest
t = time in years

Now plug in all variables into the equation.

$A = 3400(1+.0825)^{25} = 24670.419$

To the nearest cent would be rounding the answer to the nearest hundredth.

$24670.419 = 24670.42$

The answer is $24670.42