Question

Jenny deposits $105 into an account that earns 4% interest compounded annually. What is the balance in her account after 11 years? (Round to the nearest cent) Use the compound interest formula: A=P(1+rn)nt

Answer 1

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Answer:

  $161.64

Step-by-step explanation:

Put the given numbers into the given formula and do the arithmetic.

  P = $105, r = 0.04, n = 1

  A = $105(1 +0.04/1)^(1·11)

  A = $105(1.04^11) ≈ $161.64

The balance after 11 years is $161.64.