Question

Using the formula S = P(1 + r)t, where P is the original principal, r is the annual interest rate, and t is the number of years, what is the investment savings, S, if P = $14,500.00, r = 7.5%, and t = 5 years?

Answer 1

`~~~~~~ \textit{Savings Earned Amount} \\\\ S=P\left(1+r\right)^(t) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$14500\\ r=rate\to 7.5\%\to (7.5)/(100)\dotfill &0.075\\ t=years\dotfill &5 \end{cases} \\\\\\ S=14500\left(1+0.075\right)^(5)\implies S=14500(1.075)^5\implies A\approx 20816.63`