Question

Lindsay invested $4500 at 4% interest compounded annually.

How much interest will she earn in 10 years?



A.
$180.00


B.
$187.27


C.
$1800.00


D.
$2161.10

Answer 1

In order to understand this problem, you have to understand that 4% = 0.04

Answer 2

If you multiply 4500 by 0.04, you get 180 dollars
This is only in 1 year

To find the answer in 10 years, you have to multiply 180 by 10

=1800

Does that make sense?

Answer 3

it might make sense but it is wrong

Answer 4

to increase a number by \(4\%\) multiply it by \(100\%+4\%=104\%=1.04\)
to do it ten times in succession, multiply it by
\[(1.04)^{10}\]
your job it to compute \[4500\times (1.04)^{10}\] with a calculator

Answer 5

i get this
http://www.wolframalpha.com/input/?i=4500%281.04%29^10

Answer 6

if you want just the interest, subtract \(4500\) from that number

Answer 7

wow

Answer 8

This is compounded interest, not simple interest @satellite73

Answer 9

right

Answer 10

the method shown by @KirbyLegs above would be for "simple" interest
4% of the original amount each year
the method i wrote is for "compound" interest
4% of the CURRENT amount each year

Answer 11

That means the answer of ((4500*(1*0.04)= 1st year
1st year total*(1*0.04)= 2nd year
And so on and on

Answer 12

year one \(4500(1.04)\)
year two \(4500(1.04)(1.04)=4500(1.04)^2\)
year three \(4500(1.04)^3\)
year ten \(4500(1.04)^{10}\)

Answer 13

Yes, but you would take the totals, it would be more work

Answer 14

i wouldnt care

Answer 15

Satellite and I both gave answers that are options in the multiple choice problem
I'm sure one of us is right.

If you are in an algebra class, then I am right
If you are in an economics o college level class, Satellite is right
Just guessing . . .

Answer 16

whateve

Answer 17

The answer was D. I knew the answer, and I could of done it, but to be honest, I was just kinda lazy.