Question

5,600 dollars is placed in a savings account with an annual interest rate of 6%. If no money is added or removed from the account, which equation represents how much will be in the account after 8 years?

Answer
Multiple Choice Answers
a. M, equals, 5, comma, 600, left bracket, 1, point, 0, 6, right bracket, to the power 8M=5,600(1.06)
b. M, equals, 5, comma, 600, left bracket, 0, point, 0, 6, right bracket, to the power 8M=5,600(0.06)
c. M, equals, 5, comma, 600, left bracket, 0, point, 9, 4, right bracket, to the power 8M=5,600(0.94)
d. M, equals, 5, comma, 600, left bracket, 1, minus, 0, point, 0, 6, right bracket, to the power 8M=5,600(1−0.06)

Answer 1

To calculate the amount in the account after 8 years, use the formula for compound interest: M = P(1 + r)^t. Substituting the given values, the equation becomes M = 5,600(1.06)^8. The correct option is a.

Step-by-step explanation:

To calculate how much will be in the account after 8 years, we can use the formula for compound interest:

M = P(1 + r)^t

Where:

• M is the final amount in the account
• P is the initial amount in the account ($5,600)
• r is the annual interest rate (6% = 0.06)
• t is the number of years (8)

Substituting these values into the formula, we get:

M = 5,600(1.06)^8

Therefore, the equation that represents how much will be in the account after 8 years is M = 5,600(1.06)^8.