Question
7 Jenny invests \( \$ 8500 \) for 3 years in a savings account. She gets \( 2.3 \% \) per year compound interest. (a) How much money will Jenny have in her savings account at the end of 3 years? Give your answer correct to the nearest dollar.
Ask by Gough Erickson.
Nov 17,2024 19:00
UpStudy AI Solution
Tutor-Verified Answer
Answer
Jenny will have approximately $9100 in her savings account at the end of 3 years.
Solution
Sign in to Unlock Answers for Free! ![]()
A Learning Platform Trusted by Millions of Real Students and Teachers.
Unlock Answered by UpStudy AI and reviewed by a Professional Tutor
Like
The Deep Dive
To calculate the amount Jenny will have in her savings account after 3 years with compound interest, we can use the formula for compound interest:
\[
A = P(1 + r)^n
\]
where:
- \( A \) is the amount of money accumulated after n years, including interest,
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the annual interest rate (decimal), and
- \( n \) is the number of years the money is invested or borrowed.
Here, \( P = 8500 \), \( r = 2.3\% = 0.023 \), and \( n = 3 \).
Plugging in these values:
\[
A = 8500(1 + 0.023)^3
\]
\[
A = 8500(1.023)^3
\]
\[
A ≈ 8500(1.070144)
\]
\[
A ≈ 9096.73
\]
Rounded to the nearest dollar, Jenny will have approximately \( \$9097 \) in her savings account at the end of 3 years.
Related Questions
Use the table to answer the following questions.
The marginal, or additional, gain from Bella's first hour spent working, from 7:00 AM to 8:00 AM, is 120 problems.
The marginal gain from Bella's third hour spent working, from 9:00 AM to 10:00 AM, is 60 problems.
The following week, Bella's statistics faculty advisor gives her some advice. In all their years of teaching they claim to observe that working on 105
students are able to review lecture notes at a constant pace during each hour spent studying.
Given this information, in order to use her 4 hours of time spent studying to get the highest possible test score, how many hours should she have
spent solving multiple choice problems, and how many hours should she have spent reviewing lecture notes?
0 hours working on problems, 4 hours reading
1 hour working on problems, 3 hours reading lecture notes. Form sime
3 hours working on problems, 1 hour reading
4 hours working on problems, 0 hours reading
Economics
Mar 22, 2025
If the total cost of producing 20 units of output is $1,000 and the average variable cost is $35, what is the firm's average fixed cost at that level of output? 0, $50, $65 , or $15
Economics
Mar 28, 2025
What is an ongoing amount paid by an individual to maintain insurance coverage?
Select one:
Co-insurance
Deductible
Formulary
Premium
Economics
Mar 22, 2025
Alida works from home. Which item is a want for her
Selecṭ a response.
Cell phone
Internet
Groceries
Streaming service
Economics
Mar 23, 2025
Sydney bought cryptocurrency and then converted some
to dollars, sold some, exchanged her Bitcoin for
Ethereum, and used some to buy a plane ticket. Which
actions involving cryptocurrency does Sydney need to
report to the IRS for tox purposes?
Only converting the cryptocurrency to dollars
All actions except the original purchase of
cryptocurrency
Only selling some and buying the plane ticket
All of the transactions where she made money
Economics
Mar 20, 2025