Question

Colin received a bonus check for $2,500. He is going to deposit the money into his bank account that revives 5.5% compounded annually. What is Collins account balance after 15 years

$4793
$6652
$5581
None of these choices are correct

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount}\\\\A=P\left(1+(r)/(n)\right)^(nt)\quad \begin{cases}A=\textit{accumulated amount}\\P=\textit{original amount deposited}\to &\$2500\\r=rate\to 5.5\%\to (5.5)/(100)\to &0.055\\n=\begin{array}{llll}\textit{times it compounds per year}\\\textit{annually, thus once}\end{array}\to &1\\t=years\to &15\end{cases}\\\\\\A=2500\left(1+(0.055)/(1)\right)^(1\cdot 15)\implies A=2500(1.055)^(15)\implies A\approx 5581.1912`