Adrianne invested $2000 in an account at a 3.5% interest rate compounded annually. she made
no deposits or withdrawals on the account for 4 years. determine, to the nearest dollar, the
balance in the account after the 4 years.

With the information given, you can make the expression 2000*3.5%*4, because the interest in a year is 3.5% of 2000 and it goes for four years.

Change 3.5% to 0.035:

2000*0.035*4

Multiply:

70*4

280

To find the total balance, add 2,000 to the amount of interest earned, 280.

2000+280=2280.

Therefore, after the 4 years pass, the account balance is $2280.

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%