Question

Ebonie invests in $2500 today in an account earning 7%. How much will she have in 5 years?

Answer 1

Amount she Receive in 5 years = $3506.37

Explanation:

Given in question as

Ebonie invests amount in account = P = $2500

The interest rate she will have = 7%

The amount will keep in account for 5 years

Now we apply compound interest (CI ) to determine how much she will receive after 5 years ,

So , for CI

Amount = principal ( 1 +
`(Rate)/(100)` ^ T ,where T is Time

So, A = 2500 ( 1 +
`(7)/(100)`)^5

Or, A = 2500 (1.40255)

Or, A = $3506.37

Hence Amount she will receive $ 3506.37 Answer