Question

How much money will Alondra make if she invests $900 in an account that pays 8.2% interest compounded annually?

Answer 1

Answer:

$\ 973.80$  

Step-by-step explanation:

The complete question is

How much money will Alondra make if she invests $900 in an account that pays 8.2% interest compounded annually for one year?

we know that    

The compound interest formula is equal to  

$A=P(1+\frac{r}{n})^{nt}$  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

$t=1\ year\\ P=\ 900\\ r=8.2\%=8.2/100=0.082\\n=1$

substitute in the formula above

$A=900(1+\frac{0.082}{1})^{1*1}$  

$A=900(1.082)^{1}$  

$A=\ 973.80$