Calculate annually compounded interest
Question
Evelyn placed $2.700 in a savings account which earns 1.1% interest, compounded every year. How much will
she have in the account after 5 years?

$2,851.80

Step-by-step explanation:

Lets use the compound interest formula to solve:

P = initial balance

r = interest rate (decimal)

n = number of times compounded annually

t = time

First, change 1.1% into a decimal:

1.1% -> -> 0.011

Next, plug the values into the equation:

She will have $2,851.80 after 5 years.