Question

Aiden has $6,000 in an account. The interest rate is 5% compounded annually.To the nearest cent, how much will he have in 5 years?Use the formula B=p(1+r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.$

Answer 1

Using the formula provided by the problem:

`\begin{gathered} B=p(1+r)^t \\ where: \\ p=6000 \\ r=5\%=0.05 \\ t=5 \\ Therefore: \\ B=6000(1+0.05)^5 \\ B\approx7657.69 \end{gathered}`

Answer:

$7657.69