Sheba opened a retirement account with 36,500 $. H e r a c c o u n t g r e w a t a r a t e o f$ 7 \%$ per year compounded annually. She made no deposits or withdrawals on the account.

What was the account worth, at the end of 2 years, to the nearest dollar?

Answer

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Answer

Final Answer: The account was worth $41789$ at the end of 2 years, to the nearest dollar.

Steps

Step 1 ：Translate the problem into the formula for future value in compound interest: $F V = P * (1 + r / n)^{n t}$

Step 2 ：Substitute the given values into the formula: $F V = 36500 * (1 + 0.07 / 1)^{1 * 2}$

Step 3 ：Simplify the expression inside the parentheses: $F V = 36500 * (1.07)^{2}$

Step 4 ：Calculate the future value to the nearest dollar: $F V = 41789$

Step 5 ：Final Answer: The account was worth $41789$ at the end of 2 years, to the nearest dollar.