Question

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.

Answer 1

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.