Question

Juno deposited $750 in a savings account that earns 4% interest compounded annually. If she does not deposit or withdraw any more money, how much money will there be in the account after 13 years? Round your answer to the nearest dollar. A. $1249 B. $1360 C. $1427 D. $1140

Answer 1

The correct answer is A) $1249.

Explanation:
The amount of interest is calculated using the formula
$A=p(1+\frac{r}{n})^{nt}$,

where a is the amount of principal, r is the interest rate as a decimal number, n is the number of times per year the interest is compounded, and t is the number of years.

Our principal is $750, the interest rate is 4%=4/100=0.04, n is 1, and t is 13:
$A=750(1+\frac{0.04}{1})^{13\times1}=750(1+0.04)^{13}=750(1.04)^{13}=1248.81$,

which rounds to 1249.

Answer 2

Answer:

A. $1249.

Step-by-step explanation:

We have been given that Juno deposited $750 in a savings account that earns 4% interest compounded annually. We are asked to find the amount of money in the account after 13 years.

To solve our given problem, we will use compound interest formula. $A=P(1+\frac{r}{n})^{nt}$, where,

A = Amount after t years,

P = Principal amount,

r = Interest rate in decimal form,

n = Number of times interest is compounded per year,

t = Time in years.

Let us convert our given interest rate in decimal form.

$4\%=\frac{4}{100}=0.04$

Upon substituting our given values in compound interest formula we will get,

$A=\ 750(1+\frac{0.04}{1})^{1\cdot 13}$

$A=\ 750(1+0.04)^{13}$  

$A=\ 750(1.04)^{13}$  

$A=\ 750\times 1.665073507310388$  

$A=\ 1248.805130482791\approx \ 1249$  

Therefore, there will be $1249 in Juno's account after 13 years and option A is the correct choice.