Question

6700 dollars is placed in an account with an annual interest rate of 8.25%. How much will be in the account after 28 years, to the nearest cent?

Answer 1

Answer:

61667.47

Step-by-step explanation:

Answer 2

At the end of 28 years, there will be 22,083.2 dollars in the account.

Step-by-step explanation:

Step 1; First we must calculate how much interest there is in total over 28 years. The annual interest rate is 8.25% i.e. 8.25% of 6,700 dollars which equals 552.75 dollars. As the years' pass, more and more will be put into the account due to interest. After 28 years, there will be an interest of 229.6% (8.25% per year * 28 years)of the initial amount.

Step 2; We must find the money due to interest and add it with the money that was put in initially. The interest amount is 2.296 times the 6,700 dollars which was put in. The interest equals 15,383.2 dollars. With this, the initial 6,700 dollars is added which comes to a total of 22,083.2 dollars