Question

George’s parents are saving for his college fund. They put $5,000 into an interest bearing account with a compound interest rate of 5.5%. George’s parents want to determine what the balance of his college fund account will be after 15 years. Using the formula a=p(1+r)^t , which is the correct substitution for the formula? a=5000(1+0.055)^15 a=5000(1+0.055)15 a=5000(1+0.055)^5.5 a=(5000+0.055)+1^15

Answer 1

a=5000(1+0.055)^15

Explanation:

p= amount in present

r=interest

t= period of time

Answer 2

Answer:
`a=5000(1+0.055)^(15)`

Explanation:

Given : George’s parents put $5,000 into an interest bearing account with a compound interest rate of 5.5%.

i.e. Principal amount :
`p=\$5,000`

Rate of interest : r=5.5%=0.055

George’s parents want to determine what the balance of his college fund account will be after 15 years. i.e. t= 15

Substitute all the values of p , r at t in the given formula
`a=p(1+r)^t`, we get

`a=5000(1+0.055)^(15)`

Hence, the correct substitution for the formula =
`a=5000(1+0.055)^(15)`