Question

Clare puts $600.00 into an account to use for school expenses. The account earns 10% interest, compounded annually. How much will be in the account after 5 years?​

Answer 1

`A=` $
`966.306`

Explanation:

we know that

The compound interest formula is equal to

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

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

`t= 5`
`years`

`P=` $
`600.00`

`r=10`%
`=10/100=0.10`

`n=1`

substitute in the formula above

`A=600(1+(0.10)/(1))^1^*^5`

`A=600(1.10)^5`

`A=` $
`966.306`