SOLUTION: Lydia invested $1700 in an account that pays 2.75% interest compounded annually. Assuming no deposits or withdrawals are made, find how much money Lydia would have in the account

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Question 1156966: Lydia invested
$1700 in an account that pays 2.75% interest compounded annually. Assuming no deposits or withdrawals are made, find how much money Lydia would have in the account 7 years after her initial investment. Round to the nearest tenth (if necessary).
Found 2 solutions by ikleyn, mananth:
Answer by ikleyn(52786) About Me  (Show Source):
You can put this solution on YOUR website!
.

Future value FV = 1700%2A%281%2B0.0275%29%5E7 = 1700%2A1.0275%5E7 = 2055.52 dollars.     ANSWER

Learn the subject from this lesson
    - Compound interest percentage problems
in this site.


Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!

Formula for Amount when calculating Compound Interest
A=P(1+(r/100)^tn
an initial investement of $1700
at 2.75% annual interest,
compounded 1 times per year,
after 7 year(s).
A = 1700*(1+0.0275)^7
=2055.50