Answer:
$57,369
Step-by-step explanation:
We have been given that an amount of $53,000 is placed in an investment account that grows at a fixed rate of 2% (compound growth) per year. We are asked to find the amount in the account after 4 years.
To solve our given problem we will use compound interest formula.\
[tex]A=P(1+\frac{r}{n})^{nt}[/tex], where,
A = Final amount after t years,
P = Principal amount,
r = Annual interest rate in decimal form,
n = Number of times interest is compounded per year,
t = Time in years.
Let us convert our given rate in decimal form.
[tex]2\%=\frac{2}{100}=0.02[/tex]
Upon substituting our given values in compound interest formula we will get,
[tex]A=\$53,000(1+\frac{0.02}{1})^{1*4}[/tex]
[tex]A=\$53,000(1+0.02)^{4}[/tex]
[tex]A=\$53,000(1.02)^{4}[/tex]
[tex]A=\$53,000*1.08243216[/tex]
[tex]A=\$57368.90448\approx \$57,369[/tex]
Therefore, an amount of $57,369 will be in the account after 4 years.
