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Please help!

Zack deposited $9,129 in a savings account earning 5% interest, compounded annually.

To the nearest cent, how much will he have in 5 years?

Use the formula B = p(1 + r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Please help! Zack deposited $9,129 in a savings account earning 5% interest, compounded-example-1
User Creative
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1 Answer

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Given Information:

Principle amount = P = $9,129

Interest rate = r = 4% = 0.05

Period in years = t = 5

Required Information:

Balance in 5 years = ?

Answer:

Balance in 5 years = $11,651.17

Explanation:

Using the formula given in the question,


B = P(1 + r )^(t)

Where B is the final amount, P is the initial amount, r is the interest rate and t is the number of years


B = P(1 + r )^(t)\\\\B = 9,129(1 + 0.05)^(5)\\\\B = 11,651.17

Therefore, Zack will have $11,651.17 in 5 years by investing $9,129 in a savings account at 5% annual interest.

User Eadmaster
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