Arlo invested $4000 in an account that earns 5.5% interest compounded annually the formula for compound interest interest is A (

Question

julsineya [31]

2 years ago

15

Arlo invested $4000 in an account that earns 5.5% interest compounded annually the formula for compound interest interest is A (

t)=P(1+l). How much did arlo have in the account after 4 years

Mathematics

2 answers:

timama [110] · Answer 1 · 2022-07-29T17:17:54+03:00

timama [110]2 years ago

7 0

Answer: 4,955.30

Step-by-step explanation:

Alika [10] · Answer 2 · 2022-07-29T16:14:45+03:00

For compounding interests, we use the equation F = P (1+i)^n where F is the future amount of the principal amount, P, in n years. Take note that the interest to be used should be the effective interest rate. In this case, it is already the effective interest rate.

F = P (1+i)^n
F = $4000 (1+.055)^4
F = $4955.2986