Brian invested 15000 in account paying an interest rate of 3.6% compounded annually. Assuming no deposits or withdrawals are made, how much money, to the nearest cent, would be in the account after 18 years?

Solution

B r ian in v es t e d 15000 in a cco u n t p a y in g an in t eres t r a t e o f 3.6% co m p o u n d e d ann u a ll y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w m u c h m o n ey, t o t h e n e a res t ce n t, w o u l d b e in t h e a cco u n t a f t er 18 ye a rs ?

Amount : 28350.9

Solution steps

Translate the problem into an equation:

A = 15000 (1 + \frac{0.036}{1})^{1 \cdot 18}

15000 (1 + \frac{0.036}{1})^{1 \cdot 18} = 28350.90041 \dots

Round to the nearest hundredth:

28350.9

Amount : 28350.9