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Temka [501]
3 years ago
6

Landry earned $2,300 over the summer and decided to invest it in an account that earns 4% annual compound interest. If Landry do

es not make any other deposits or withdrawals, how much will be in her account after 20 years?
Mathematics
2 answers:
solniwko [45]3 years ago
6 0

Answer:

Landry will have $5039.58

Step-by-step explanation:

compound interest formula: amount = p(1 + \frac{r}{n})^{nt}

p= principal ($2,300)

r= interest rate as a decimal (4% = 0.04)

n= number of times the principal is compounded per year (annually = once per year so 1 time per year)

t= time in years (20 years)

new equation: amount = 2300(1+\frac{0.04}{1} )^{1*20}

That equation equals $2,739.58 which you add to the principal.

$2,739.58 + $2,300 = $5039.58

hope this helps :) the equations aren't showing up right :(

Lemur [1.5K]3 years ago
4 0
She would have $5039.58 in her account after 20 years
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