find a bank account balance if the account starts with $100, has an annual rate of 4%, and the money left in the account for 12 years.
Mathematics · Middle School · Wed Jan 13 2021
Answered on
If the Account is compounded yearly at the rate of 4%. It will have $160.10 after 12 years.
A = P (1+r/n)^nt ...is the formula for compounded interest.
P = Starting amount (principal)
r = rate
n = number of times compounded yearly
t = amount of years.
P = 100
r = 0.04 (4% as a decimal)
n = 1 (compounded once per year)
t = 12 years
so,
A = 100 (1+0.04/1)^1*12
A = 100(1+0.04)^12
A = 100 (1.6010...)
A = 160.10322...
. $160.10