Question

Kurt has $9,000 in an account. The interest rate is 5% compounded annually. To the nearest cent, how much will he have in 1 year? Kurt has $ 9,000 in an account . The interest rate is 5 % compounded annually . To the nearest cent , how much will he have in 1 year ?

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Answer 1

$9450

Explanation:

Answer:

A = $9,450.00

A = P + I where

P (principal) = $9,000.00

I (interest) = $450.00

Calculation Steps:

First, convert R as a percent to r as a decimal

r = R/100

r = 5/100

r = 0.05 rate per year,

Then solve the equation for A

A = P(1 + r/n)nt

A = 9,000.00(1 + 0.05/1)(1)(1)

A = 9,000.00(1 + 0.05)(1)

A = $9,450.00

Summary:

The total amount accrued, principal plus interest, with compound interest on a principal of $9,000.00 at a rate of 5% per year compounded 1 times per year over 1 years is $9,450.00.