Solve the problem.
-Kerry invests $553 in a savings account that earns 3.4% compounded annually. Andy invests $553 In a savings account that earns 5% compounded annually. How much is in each of their accounts After 10 years and after 20 years?
A) Kerry: $\$ 772.56 ; \$ 1079.28$
Andy: $\$ 900.78 ; \$ 1467.27$

B) Kerry: $\$ 747.15 ; \$ 1043.80$
Andy: $\$ 857.88 ; \$ 1397.40$

C) Kerry: $\$825.98; \$825.98$
Andy: $\$ 993.11 ; \$ 993.11$

D) Kerry: $\$ 722.59$; $\$ 944.18$
Andy: $\$817.03; \$1207.13$

Question

Solve the problem.
-Kerry invests $553 in a savings account that earns 3.4% compounded annually. Andy invests $553 In a savings account that earns 5% compounded annually. How much is in each of their accounts After 10 years and after 20 years? 
A) Kerry: $\$ 772.56 ; \$ 1079.28$
Andy: $\$ 900.78 ; \$ 1467.27$

B) Kerry: $\$ 747.15 ; \$ 1043.80$
Andy: $\$ 857.88 ; \$ 1397.40$

C) Kerry: $\$825.98; \$825.98$
Andy: $\$ 993.11 ; \$ 993.11$

D) Kerry: $\$ 722.59$; $\$ 944.18$
Andy: $\$817.03; \$1207.13$

Quizplus · Accepted Answer

To calculate the future value of investments compounded annually, use the formula $A = P(1 + r)^n$, where $A$ is the amount of money accumulated after n years, including interest, $P$ is the principal amount (initial investment), $r$ is the annual interest rate (decimal), and $n$ is the time the money is invested for in years. For Kerry: $A = 553(1 + 0.034)^{10}$ and $A = 553(1 + 0.034)^{20}$. For Andy: $A = 553(1 + 0.05)^{10}$ and $A = 553(1 + 0.05)^{20}$. Calculating these gives the amounts for Kerry and Andy as in option A.

Solve the Problem $772.56;$1079.28\$ 772.56 ; \$ 1079.28$772.56;$1079.28 Andy $900.78;$1467.27\$ 900.78 ; \$ 1467.27$900.78;$1467.27

Solve the Problem $\$ 772.56 ; \$ 1079.28$ Andy $\$ 900.78 ; \$ 1467.27$