Question

If the apy of a savings account is 2.8% and if the principal in the savings account we're $2600 for an entire year what will be the balance of the savings account after all the interest is paid for the year?

Answer 1

Its 2600*(1.028) which is 2672.8

That is also apex answer

Answer 2

$2672.8

Explanation:

We have been given that APY of a savings account is 2.8% and the principal in the savings account was $2600 for an entire year. We are asked to find he balance of the savings account after all the interest is paid for the year.

We will use simple interest formula to solve our given problem.

`A=P(1+rT)`, where,

A = Final amount after T years,

P = Principal amount,

r = Interest rate in decimal form,

T = Time in years.

Let us convert our given rate in decimal form.

`2.8\%=(2.8)/(100)=0.028`

Upon substituting our given values in above formula we will get,

`A=\$2600(1+0.028*1)`

`A=\$2600(1+0.028)`

`A=\$2600(1.028)`

`A=\$2672.8`

Therefore, the balance of of the savings account will be $2672.8.