SOLUTION: You invest $800 in an account with an annual interest rate of 3.2%, compounded annually. How much in in the account after 15 years? Round your answer to the nearest whole number

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Question 549847: You invest $800 in an account with an annual interest rate of 3.2%, compounded annually. How much in in the account after 15 years? Round your answer to the nearest whole number
Found 2 solutions by jim_thompson5910, stanbon:
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!

A=P%281%2Br%2Fn%29%5E%28n%2At%29 Start with the compound interest formula


A=800%281%2B0.032%2F1%29%5E%281%2A15%29 Plug in P=800, r=0.032 (the decimal equivalent of 3.2%), n=1 and t=15.


A=800%281%2B0.032%29%5E%281%2A15%29 Evaluate 0.032%2F1 to get 0.032


A=800%281.032%29%5E%281%2A15%29 Add 1 to 0.032 to get 1.032


A=800%281.032%29%5E%2815%29 Multiply 1 and 15 to get 15.


A=800%281.60396711263693%29 Evaluate %281.032%29%5E%2815%29 to get 1.60396711263693.


A=1283.17369010954 Multiply 800 and 1.60396711263693 to get 1283.17369010954.


A=1283.17 Round to the nearest hundredth (ie to the nearest penny).


So there will be $1283.17 in the account.

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
You invest $800 in an account with an annual interest rate of 3.2%, compounded annually. How much in in the account after 15 years? Round your answer to the nearest whole number
----
A(t) = Ao(1+(r/n))^(nt)
Ao = 800
n = 1
r = 0.032
t = 15
------
A(15) = 800(1.032)^(15)
A(15) = $1283
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Cheers,
Stan H.
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