Answer:
2 years = $642.74 | 4 years = $688.51
Step-by-step explanation:
To solve this problem, we can use the compound interest formula:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 3.5% into a decimal:
3.5% -> [tex]\frac{3.5}{100}[/tex] -> 0.035
Now, lets solve for 2 years:
[tex]A=600(1+\frac{0.035}{1})^{1(2)}[/tex]
[tex]A=642.74[/tex]
The last step is to solve for 4 years:
[tex]A=600(1+\frac{0.035}{1})^{1(4)}[/tex]
[tex]A=688.51[/tex]
After 2 years, the total amount will be $642.74. After 4 years it will be $688.51
