Question

At the beginning of year 1, Amada invests $800 at an annual compound interest rate of 5%. She makes no deposits to or withdrawals from the account.Which explicit formula can be used to find the account's balance at the beginning of year 5? What is the balance?

Answer 1

Explanation:

Step 1. The information that we have is:

-The initial amount of the investment or principal P is:

`P=800`

The interest rate r is:

`\begin{gathered} r=5\% \\ As\text{ a decimal:} \\ r=0.05 \end{gathered}`

Step 2. T