Supposed Susan places $9,000 in an account that pays 12% interest compounded each year assume that no withdrawals are made from the account find the amount in the account at the end of one year
The formula for the interest compounded yearly is A = P (1 + r)^n
where A is the final amount, P is the principal amount (initial investment), r is the annual interest rate (in decimal), and n is the number of years.
So for Susan, it would be A = $9,000 (1 + 0.12)^1
A = $9,000 x 1.12
A = $10,080
So at the end of one year, Susan will have $10,080 in the account.
To find the amount in the account at the end of one year, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount in the account
P = the principal amount (initial amount)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
In this case, Susan places $9,000 in the account, the interest rate is 12% (or 0.12 as a decimal), and interest is compounded once per year. We want to find the amount after one year.
Substituting the given values into the formula:
A = 9000(1 + 0.12/1)^(1*1)
Simplifying:
A = 9000(1.12)^1
Calculating:
A = 9000 * 1.12
A ≈ $10,080
Therefore, the amount in the account at the end of one year will be approximately $10,080.