Answer:
In 9 years, the account will be worth $1699.48
Step-by-step explanation:
Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. Ian invested $1.315 in savings account which earns 2.86% interest compunded quaterly.
The ammount of money the account will be worth is given by the formula:
[tex]A = P(1 + \frac{[\frac{r}{4}}{100} )^4n[/tex]
where r: Rate of annual interest = 2.86%
n: the number of years = 9
P= Principal ammount = $1315
Then A= $1699.48
