Question

4400 dollars is placed in an account with an annual interest rate of 8.25%.how much will be in the account after 22 years, to the nearest cent?

Answer 1

Answer:

Future Value = $2,516,900 cent

Step-by-step explanation:

Here, we're to calculate future values;

Given the following parameters

Investment = $4,400

Interest Rate = 8.25%

Time = 22 years

Amount = ?

Future Value is calculated using the following formula;.

Future Value = Investment * (1 + Interest Rate)^time

Substitute each value;

Future Value = $4,400 * ( 1 + 8.25%)^22

Future Value = $4,400 * (1 + 0.0825)^22

Future Value = $25169.036295801178201749433678664198539199704088854443412123828238691203296184539794921875

Future Value = $25169 --- Approximated

Convert to Cent

Future value = $25,169 * 100 cent/$

Future Value = $2,516,900 cent

Hence, $2,516,900 cent will be in the account after 22 years