Question

3400 dollars is placed in an account with an annual interest rate of 8.25%. How much will be in the account after 25 years, to the nearest cent?

Answer 1

$A=S(1+r)^t$ is the formula for an annual interest rate

A - the future amount

S - initial amount

r - rte of interest

t - time in years

Now plug in all variables into the equation

$A=3400(1+0.0825)^{25}\\=24670.419$

To the nearest cent would be rounding the answer to the nearest hundredth.

$24670.419=24670.42$