Question

Ethan puts $700.00 into an account to use for school expenses. The account earns 15% interest, compounded annually. How much will be in the account after 9 years?

Round your answer to the nearest cent.

Answer 1

$2462.51

Explanation:

You want to know the value of an investment of $700 earning 15% compounded annually for 9 years.

Compound interest

The compound interest formula tells you the amount is ...

A = P(1 +r)^t

A = $700(1 +0.15)^9 ≈ $2462.51

There will be $2462.51 in the account after 9 years.

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