Problema Solution
find a bank account balance if the account starts with $100, has an annual rate of 4%, and money left in the account for 12 years
Answer provided by our tutors
I assume we need to find the future amount after 12 years.
P = $100 the principal
r = 0.04 or 4% annual rate
t = 12 years
A = the future amount after t = 12 years
I = the itnerest after 12 years
I = P*r*t
A = P + I
A = P + Prt
A = P(1 + rt)
A = 100(1 + 0.04*12)
A = $148
After 12 years there will be $148 on the bank account.