Question

Corey invested $1500 when he was a freshman in order to save for college. If he chooses to invest it in an account that earns 3.5% interest and is compounded annually, how much money will he have after 4 years?

Answer 1

Answer: He will have $1721.28. after 4 years.

Step-by-step explanation:

The formula we use to find the compounded amount A is :

$A=P(1+r)^t$, where P= principal value, r = rate of interest , t= time.

As per given , we have

P=$1500  , r=3.5%=0.035 , t= 4 years

Money he will have after 4 years = $1500(1+0.035)^4$

$=1500(1.035)^4\\\\=1721.28450094\approx1721.28$

Hence, he will have $1721.28. after 4 years.