Suppose 20000 is deposited into an account paying 45 interes

Suppose $20,000 is deposited into an account paying 4.5% interest, compounded annually. How much money is in the account after four years if no withdrawals or additional deposits are made? $24,350.52 $24,100.00 $23,850.37 $23,600.00 these are your choices please show work

Solution

Amount = Principal( 1 + rate/100)^(time)

Principal = $ 20, 000

time = 4 years

rate = 4.5%

Plugging thes values in the formula:

Amount = 20, 000{ 1+ 4.5/100)^4

= 20, 000{ 1+ 0.045}^4

= 20,000(1.045)^4

= $ 23850.37