Question

Rob has $7,869 in an account that earns 13% interest compounded annually.To the nearest cent, how much will he have in 5 years?

Answer 1

Explanation:

Principal (P)=$7869

Rate (R)= 13%

Time (T)= 5 years

Compound Interest (CI)=?

We know that,

CI = P { (1+R/100)^T -1}

= $7869 {(1+13/100)^5 -1}

= $7869 {(113/100)^5 -1}

= $7869 {(1.13)^5 -1}

= $7869 {1.84-1}

= $7869 × 0.84

= $6609.96

Compound Amount= CI+p

= $6609.96+7869

= $14478.96

Therefore, he will have $14478.96 after 5 years.