SOLUTION: Hello everyone, I really just need some help in determining the formula for this problem- Suppose that $3500 is placed in an account that pays 11% interest compounded each year.Ass

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Question 898674: Hello everyone, I really just need some help in determining the formula for this problem- Suppose that $3500 is placed in an account that pays 11% interest compounded each year.Assume that no withdrawals are made from the account. 1) find the amount in the account at the end of 1 year. 2)find the amount in the account at the end of 2 years.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi

 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount

P= principal = 3500

r= annual rate = .11

n= periods per year = 1

t= years = 1 and then 2

A%281%29+=+3500%281.11%29%5E%281%29

A%282%29+=+3500%281.11%29%5E%282%29