Katie placed $2500 in a savings account compounded annually at 1.75%. what is the value of her account after 4 years?

Question

asked Jan 25, 2023 109k views

1 Answer

Jimm · Answer 1 · 2023-01-31T21:10:48+0000

We can solve this question using the formula for compound interest:

$F=P\cdot(1+i)^n$

F = ?

P = $2500

i = 1.75

n = 4

Then, we have:

$F=2500\cdot(1+(1.75)/(100))^4\Rightarrow F=2679.6475\Rightarrow F=2679.65$

The value of her account after 4 years is about $2679.65.