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Sagot :
Answer:
Given that,
$4000 is placed in an account that pays 13% interest compounded each year.
a) Find the amount in the account at the end of 1 year.
we know that,
Amount after n years under compound interest rate r%,
[tex]=P(1+\frac{r}{100})^n[/tex]Put n=1, we get
[tex]=4000(1+\frac{13}{100})[/tex][tex]=4000(\frac{113}{100})[/tex][tex]=4,520[/tex]Amount in the account at the end of 1 year will be $4,520.
b) Find the amount in the account at the end of 2 years
Put n=2, we get
[tex]=4000(1+\frac{13}{100})^2[/tex][tex]=4000(\frac{113}{100})^2=5,107.6[/tex]Amount in the account at the end of 2 years is $5,107.6
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