Question

slyes grandparents invest $1500 in a college account earns 4.9% intrest that is compound annually. how much money will be in the account after 10 years?

Answer 1

Answer:

$\ 2,420.17$      

Step-by-step explanation:

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  

$t=10\ years\\ P=\ 1,500\\ r=4.9\%=4.9/100=0.049\\n=1$  

substitute in the formula above

$A=1,500(1+\frac{0.049}{1})^{1*10}$

$A=1,500(1.049)^{10}$  

$A=\ 2,420.17$