Question

Seema deposited $800 in a saving account earning 2.06% compoundedl annually. To

the nearest cent, how much will she have in 10 years? Do not include the dollar sign
in your answer​

Answer 1

980.95

Explanation:

A = $ 980.95

A = P + I where

P (principal) = $ 800.00

I (interest) = $ 180.95

Formula:

Compound Interest Equation

A = P(1 + r/n)^nt

Where:

A = Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

R = Annual Nominal Interest Rate in percent

r = Annual Nominal Interest Rate as a decimal

r = R/100

t = Time Involved in years, 0.5 years is calculated as 6 months, etc.

n = number of compounding periods per unit t; at the END of each period