en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular Word Problems >

Grace opened a savings account and deposited 300.00 as principal. The account earns 4% interest, compounded annually. What is the balance after 5 years?

Solution

G r a ce o p e n e d a s a v in g s a cco u n t an d d e p os i t e d 300.00 a s p r in c i p a l . T h e a cco u n t e a r n s 4% in t eres t, co m p o u n d e d ann u a ll y . Wha t i s t h e ba l an ce a f t er 5 ye a rs ?

Solution

Amount : 365

Solution steps

Translate the problem into an equation:

A = 300 (1 + \frac{0.04}{1})^{1 \cdot 5}

300 (1 + \frac{0.04}{1})^{1 \cdot 5} = 364.99587 \dots

Round to the nearest hundredth:

365

Amount : 365

Popular Examples

If the store has a 20% of sale, what is the original value of the goods she can now buy with a 100 voucher?42 is 8% of what number Find the time required for an investment of 5000 dollars to grow to 8700 dollars at an interest rate of 7.5 percent per year, compounded quarterly. Your answer is t= years. You may enter the exact value or round to 2 decimal places.160% of what number is 56 The area of a circle is 4.8 cm2. Find the circumference of the circle, rounding your answer to 3 significant figures.