Verified Answer :

 Lorena deposited $2372 into an account that earns 4.5% interest which is compounded once a year. How much money will Lorena have in the account in 20 years? 

=2372*1.045^20 = $5,720.59 

Answer:

5720.59

Step-by-step explanation:

Since, the amount formula in compound interest,

\(A=P(1+r)^t\)

Where, P is the principal amount,

r is the rate per period,

t is the number of periods,

Here,

P = 2372,

r = 4.5% = 0.045,

t = 20 years,

Thus, the amount of money after 20 years would be,

\(A=2372(1+0.045)^{20}\)

\(=2372(1.045)^{20}\)

\(=5720.58566691\)

\(\approx 5720.59\)

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