Someone help please !! Melinda invested $1000 in a retirement account. The formula below shows the amount of money, A, that will be in their account at the end of t years.`
A = 1000(1 + r)^t
In the formula r, r is the interest rate, expressed as a decimal. Melinda’s account has an interest rate of 6%. Which of the following is the closest to the amount that will be in Melinda’s account at the end of 2 years?
a $1120 b $1256 c $1124 d $1360

ANSWERS

2015-11-05 20:02:48

c $1124 First of all you determine that 6% is 6/100 which is the same as 0.06. Then you plug in the 0.06 into the equation: 1000(1.06)^2 = 1123.60 Since the 0.60 is over 0.50 you round up to 1124.

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