Question

One of the oldest banks in the United States is the Bank of America, founded in 1812. If $200 had been deposited at that time into an account that paid 4% annual interest, then 180 years later the amount would have grown to 200(1.04)^180 dollars. Approximate this amount to the nearest cent.

Answer 1

If they want you to approximate this without using a calculator then I don't see how you could. However, if they just want you to work that out to the nearest cent then put 200(1.04)^180 into your calculator and round it to 2 decimal places.

Answer 2

You can quickly do this with a calculator - to do it manually would take a long time but its possible.