aiden earned $675 from mowing lawns last summer. he deposited this money in an account that pays an interest…

aiden earned $675 from mowing lawns last summer. he deposited this money in an account that pays an interest rate of 3.5% compounded annually. what will be his balance after 15 years? **two decimal answer**

aiden earned $675 from mowing lawns last summer. he deposited this money in an account that pays an interest rate of 3.5% compounded annually. what will be his balance after 15 years? **two decimal answer**

Answer

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula is $A = P(1 + r)^t$, where $A$ is the final amount, $P$ 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 $r = 3.5%=0.035$, $P=$675$, and $t = 15$ years.

Step3: Substitute values into the formula

$A=675\times(1 + 0.035)^{15}$. First, calculate $(1 + 0.035)^{15}$. Using a calculator, $(1.035)^{15}\approx1.67534$. Then, $A = 675\times1.67534$. $A\approx1130.8645$.

Answer:

$1130.86$