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Jia has $44,000 in a savings account. The savings collect interest at a 6% annual rate that compounds every year. How much money will be in Jia's account after 2 years?

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Answer:

the answer is ieff = 2% - 3.24%

ieff = - 1.24% = -0.0124

Therefore the money left after 1 year would be:

F = 44,000 * (1 – 0.0124)

F = 43,454.4

So the amount of money lost is:

lost = 44,000 - 43,454.4

lost = $545.6

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