Suppose Jessica places $8500 in an account that pays 7% interest compounded each year.

Assume that no withdrawals are made from the account.
Follow the instructions below. Do not do any rounding.

a)Find the amount in the account at the end of 1 year.

b) Find the amount in the account at the end of 2 years.

8500 * 1.07

8500 * 1.07^2

a) The amount would be $9095

b) The amount would be $9731.65

Suppose that $2000 is placed in an account that pays 7% interest compounded each year.

Assume that no withdrawals are made from the account.
Follow the instructions below. Do not do any rounding.

To find the amount in the account at the end of each year, we can use the compound interest formula:

A = P(1 + r/n)^(nt)

Where:
A = the amount in the account at the end of the period
P = the principal amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years

In this case:
P = $8500
r = 7% = 0.07 (as a decimal)
n = 1 (compounded annually)
t = number of years (1 for part a and 2 for part b)

Let's calculate:

a) Amount at the end of 1 year (t = 1):

A = 8500(1 + 0.07/1)^(1*1)
A = 8500(1.07)^1
A = 8500(1.07)
A = $9095

So, the amount in the account at the end of 1 year is $9095.

b) Amount at the end of 2 years (t = 2):

A = 8500(1 + 0.07/1)^(1*2)
A = 8500(1.07)^2
A = 8500(1.07)(1.07)
A = 8500(1.1449)
A = $9721.65

So, the amount in the account at the end of 2 years is $9721.65.