If the APY of a savings account is 2.6% and if the principal in the savings account was $2400 for an entire year, what will be the balance of the savings account after all the interest is paid for the year?

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Question:

If the APY of a savings account is 2.6% and if the principal in the savings account was $2400 for an entire year, what will be the balance of the savings account after all the interest is paid for the year?

Answer:

Answer:

$2462.40

Step-by-step explanation:

We have been given that the  APY of a savings account is 2.6% and the principal in the savings account was $2400 for an entire year.

To find the balance of the savings account after all the interest is paid for the year, we will use compound interest formula.

, where,  

A= Final amount after T years.

P= Principal amount.

r= Interest rate in decimal form.

n= Period of compounding.  

T= Time in years.

Upon substituting our given values in above formula we will get,

Therefore, the balance of the savings account after all the interest is paid for the year will be $2462.40.

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