Question

A savings account of $5,000 compounded at an annual interest rate of 7% for 5 years will have how much total in the account?

Answer 1

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Answer:

$7,012.76

Explanation:

The compound interest formula is ...

A = P(1 +r)^t . . principal P invested at rate r for t years, compounded annually

A = $5000(1 +0.07)^5 ≈ $7,012.76 . . . in the account after 5 years