Question

Alexander invested $320 in an account paying an interest rate of 1.5% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 18 years?

Answer 1

$406.40

Explanation:

First, converting R percent to r a decimal

r = R/100 = 1.5%/100 = 0.015 per year.

Solving our equation:

A = 320(1 + (0.015 × 18)) = 406.4

A = $406.40