Question

If you deposit $265 in a bank account that offer 5% annual compounding interest at the end of five years what will your turtle total earnings in interest be up at t if you deposit $265 in a bank account that offer 5% annual compounding interest at the end of five years what will your total earnings in interest be

Answer 1

Total Interest = $73.21

Explanation:

The compound interest formula is

A = P * ( 1 + (r/k)) ^(kt)

where k = the number of times compounded

t = years

r = 5%

P = $265

A = $265 * ( 1 + (0.05/1) )^(1*t)

A = 265 *(1.05) ^t

let t = 5

A = 265 * 1.05^5 = $338.2146

We want the interest earned.

338.2146 - 265 = $73.2146