Question

Let's say Jose deposited $2,700 into a CD account with an Annual Percentage Rate

(APR) of 4%, compounded annually, and he must leave it in the account for at least 5
years.

Answer 1

$3283.2

Explanation:

Given data

Principal= $2700

Rate= 4%

Time= 5 years

Required

the final Amount A

The compound interest formula is

A=P(1+r)^t

Substitute

A=2700(1+0.04)^5

A=2700(1.04)^5

A=2700*1.216

A=$3283.2

Hence the balance in the account after 5 years is $3283.2