Suppose that $3500 is placed in an account that pays 12% 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. $
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The formula is: $A = P(1 + \frac{r}{n})^{nt}$ where: - A is the amount in the account after t years - P is the principal amount (initial deposit) - r is the annual interest rate (as a decimal) - n is the number of times interest is compounded per year - t is the Show more…
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