ashley invested $8,100 in an account paying an interest rate of 5.1% compounded annually. assuming no…

ashley invested $8,100 in an account paying an interest rate of 5.1% compounded annually. assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

ashley invested $8,100 in an account paying an interest rate of 5.1% compounded annually. assuming no deposits or withdrawals are made, how much money, to the nearest ten dollars, would be in the account after 11 years?

Answer

Explanation:

Step1: Identify the compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.

Step2: Convert the interest rate to decimal

Given $r = 5.1%=0.051$, $P=$8100$, and $t = 11$ years.

Step3: Substitute the values into the formula

$A=8100\times(1 + 0.051)^{11}$. First, calculate $(1 + 0.051)^{11}$. Using a calculator, $(1.051)^{11}\approx1.73797$. Then, $A = 8100\times1.73797\approx14077.557$.

Step4: Round to the nearest ten dollars

Rounding $14077.557$ to the nearest ten dollars gives $14080$.

Answer:

$14080$