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Leona [35]
2 years ago
15

Suppose that $1,000 is deposited into an account that yields 0.85% interest, compounded annually.

Mathematics
1 answer:
andrey2020 [161]2 years ago
4 0
<h3>Answer:  1034.44 dollars</h3>

=====================================

Work Shown:

A = P*(1+r/n)^(n*t)

A = 1000*(1+0.0085/1)^(1*4)

A = 1034.43596172007

A = 1034.44

---------------------

Notes:

  • P = 1000 is the deposit or principal
  • r = 0.0085 is the decimal form of the annual interest rate of 0.85%; we can say 0.85% = 0.85/100 = 0.0085
  • n = 1 represents how many times per year we're compounding the money (ie annually)
  • t = 4 = number of years
  • The result of 1034.44 dollars is only possible if you do not withdraw any of the money in the four year time period.
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