Question

Chris put $5,500 into a savings account that pays 5% interest compounded monthly. How much would be in his account after one month?

Answer 1

$5,775

Explanation:

The equation is:

A = P( 1 + rt)

We know

P = $5,500

r = 5% = 0.05

t = 1 month

Let's solve

A = 5,500( 1 + 0.05 x 1)

A = 5,500( 1.05)

A = $5,775

So, his account will be at $5,775 after one month.