Question

Marissa is saving money to buy some dubbles. She invests $710 in asavings account that earns 5% Interest, compounded annually. Howmuch money will she have in her account after 9 years? Answer indollars and round to the nearest cent.label required

Answer 1

We are given the following information

Investment amount: P = $710

Interest rate: r = 5% = 0.05

Number of compounding: n = 1 (annually means once in a year)

Number of years: t = 9

We are asked to find the final amount after 9 years.

Recall that the compound interest formula is given by

`A=P(1+(r)/(n))^(n\cdot t)`

Where P is the invested amount, r is the interest rate, n is the number of compoundings, and t is the number of years.

Let us substitute all the given values into the above formula to find the final amount (A)

`\begin{gathered} A=710(1+(0.05)/(1))^(1\cdot9) \\ A=710(1+0.05)^9 \\ A=710(1.05)^9 \\ A=\$1101.44 \end{gathered}`

Therefore, Marissa will have $1101.44 in her account after 9 years.