Question

Kurt opened a savings account and deposited $3,000.00 as principal. The account earns 5%

interest, compounded annually. What is the balance after 9 years? Rounded to the nearest cent

Answer 1

Explanation:

P = 3,000

r = 5% = 0.05

t = 9 years

Amount after 9 years is

A = P (1+ r)^t

A = 3,000(1+ 0.05)^9 = 3,000 * 1.05^9 = 4653.984648 ≈ $4,653.98

The balance after 9 years, rounded to the nearest cent is

$4,653 and 98 cents