A principal of $700 is invested in an account at 6% per year compounded annually what is the total amount of money in the account after 5 years

Question

asked Sep 10, 2020 100k views

2 Answers

Dilberted · Answer 1 · 2020-09-14T13:20:59+0000

Answer:

Total amount of money in the account be $936.6 .

Explanation:

Formula

Amount = P(1 + (r)/(100))^(t)

Where P is the principle , r is the interest and t is the time .

As given

A principal of $700 is invested in an account at 6% per year compounded annually for 5 years .

Putting all the values in the formula

Amount = 700(1 + (6)/(100))^(5)

Amount = 700(1 + 0.06)^(5)

Amount = 700(1.06)^(5)

$Amount = 700* 1.338\ (Approx)$

Amount = $ 936.6

Therefore the total amount of money in the account be $936.6 .