Question 983453: Sara opens a bank account with $200. The account accrues 2% interest compounded annually.
How much money, to the nearest cent, will she have in her account at the end of 3 years? (Use the formula A=P(1+rn)nt, where P= initial amount of money, r = interest rate, t = the number of years, and n = number of times the interest is compounded per year.)
$
Enter a number like 157.23.
Part 2
Sara wants to calculate the amount she will earn between year 3 and year 5.
How much interest will Sara earn during this time?
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! P=po(1+r/n)^nt
=200(1.02)^3=200*(1.0612)=212.24 (round only at the end)
I have year 3, and now I need year 5.
=200(1.02)^5=200*1.1040=220.82. Again, I rounded here, but the answer is on the calculator, and I don't round until the end. That is why the 0.82 is there.
That isn't the answer.
The amount between years 3 and 5 is $8.58.
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