1. **State the problem:** Noah invests 4000 into a savings account with compound interest of 2.5% per year. We need to find:
a) The amount in the account after 9 years.
b) The interest earned after 9 years.
2. **Formula for compound interest:**
$$A = P \left(1 + \frac{r}{100}\right)^t$$
where:
- $A$ is the amount after $t$ years,
- $P$ is the principal (initial amount),
- $r$ is the annual interest rate (in %),
- $t$ is the time in years.
3. **Calculate the amount after 9 years:**
Given $P=4000$, $r=2.5$, $t=9$,
$$A = 4000 \left(1 + \frac{2.5}{100}\right)^9 = 4000 \left(1 + 0.025\right)^9 = 4000 \times 1.025^9$$
Calculate $1.025^9$:
$$1.025^9 \approx 1.2467$$
So,
$$A \approx 4000 \times 1.2467 = 4986.8$$
Rounded to the nearest penny:
$$A = 4986.80$$
4. **Calculate the interest earned:**
Interest $I = A - P = 4986.80 - 4000 = 986.80$
5. **Final answers:**
a) Amount after 9 years: **4986.80**
b) Interest earned after 9 years: **986.80**
Compound Interest 094B3A
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