Question

Brandon has $95,512 in a savings account that earns 5% interest per year. The interest is not compounded. How much will he have in total in 9 months?

Answer 1

To solve this problem, we will use the formula:
A=Pe^rt
A is the amount, P is the principal, e is the constant, r is the rate of interest, and t is the time in years.
Before we put the numbers in, we have to be careful. We are asked how much will Brandon have in 9 months, and not in years. There are a total of 12 months in a year, so we will do 9/12, which is 0.75. So 9 months is 0.75 years. Now we can put everything in the formula:
A=95512e^((0.05)(0.75))
A=99161.70427
A=99161.70

Hope this helped!