Solve the problem.
-Kerry invests $362 in a savings account that earns 5.4% compounded annually. Andy invests $362 in a savings account that earns 7% compounded annually. How much is in each of their accounts
After 10 years and after 20 years?

Question

Quizplus · Accepted Answer

To find the amount in each account after a certain number of years, we use the formula for compound interest: A = P(1 + r)^n, where A is the amount of money accumulated after n years, including interest, P is the principal amount (the initial amount of money), r is the annual interest rate (decimal), and n is the number of years the money is invested for. For Kerry: A = 362(1 + 0.054)^n. For Andy: A = 362(1 + 0.07)^n. Calculating for 10 years and 20 years gives the amounts listed in choice B for each person.

Solve the Problem $815.29;$815.29\$ 815.29 ; \$ 815.29$815.29;$815.29 B) Kerry $612.51;$1036.38\$ 612.51 ; \$ 1036.38$612.51;$1036.38

Solve the Problem $\$ 815.29 ; \$ 815.29$ B) Kerry $\$ 612.51 ; \$ 1036.38$