Question

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 year?

Answer 1

Answer:

The balance after 15 year is  $831.25 .

Step-by-step explanation:

Formula

$Amount = P (1 + r)^{t}$

Where P is the principle and r is the rate of interest in the decimal form and t is the time.

As given

Caiden earned $475 from mowing lawns last summer.

He deposited this money in an account that pays an interest rate of 3.8% compounded annually.

Here

P = $475

3.8% is written in the decimal form.

$= \frac{3.8}{100}$

= 0.038

r = 0.038

t = 15 years

Put in the formula

$Amount = 475 (1 + 0.038)^{15}$

$Amount = 475 (1.038)^{15}$

$Amount = 475\times 1.75(Approx)$

Amount = $831.25

Therefore the balance after 15 year is  $831.25 .