Ask Question
4 June, 17:00

Izumi deposits $325 in an account that pays 6% interest compounded monthly. Izumi incorrectly claims that the account balance will be $670 after 1 year. What will be the account balance after 1 year. What error did Izumi likely make?

+1
Answers (1)
  1. 4 June, 17:28
    0
    Amount after one year = $410

    Error made = $260

    Step-by-step explanation:

    Number of quarters in one year = four quarters

    Hence amount after one year = P (1+r) ⁴

    A = 325 (1+0.06) ⁴ = $410

    Error made = 670 - 410 = $260
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Izumi deposits $325 in an account that pays 6% interest compounded monthly. Izumi incorrectly claims that the account balance will be $670 ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers