Question

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

Answer 1

$936.76

Explanation:

Answer 2

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 .