Question

Suppose that $8500 is placed in an account that pays 12% Interest compounded each year.

Assume that no withdrawals are made from the account.
Follow the instructions below. Do not do any rounding.
(a) Find the amount in the account at the end of 1 year.
(b) Find the amount in the account at the end of 2 years.

Answer 1

A) 7480$ will be in the account at the end of one year.
B) $6460 will be in the account at the end of 2 years.