Suppose that $$ \$ 9500 $$ is placed in an account that pays $$ 3 \% $$ 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. $$ \$ \square $$ (b) Find the amount in the account at the end of 2 years. $$ \$ \square $$

Question

UpStudy AI · Accepted Answer

Let's solve the problem step by step using the compound interest formula:

$$
A = P \times (1 + r)^n
$$

Where:
- $$ A $$ = amount in the account after $$ n $$ years
- $$ P $$ = principal amount (\$9,500)
- $$ r $$ = annual interest rate (3% or 0.03)
- $$ n $$ = number of years

### (a) Amount at the End of 1 Year

$$
A = 9500 \times (1 + 0.03)^1 = 9500 \times 1.03 = 9785
$$

$$
\$ \boxed{9785}
$$

### (b) Amount at the End of 2 Years

$$
A = 9500 \times (1 + 0.03)^2 = 9500 \times 1.0609 = 10078.55
$$

$$
\$ \boxed{10078.55}
$$
At the end of 1 year, the amount in the account is \$9,785. At the end of 2 years, it is \$10,078.55.

Solución de inteligencia artificial de Upstudy

Responder

Solución

(a) Amount at the End of 1 Year

(b) Amount at the End of 2 Years

Extra Insights

preguntas relacionadas

Latest Arithmetic Questions