Question

Carson grew up to be one of Texas most prominent real estate investor. Carson took $32,500 he made on the sale of a home and placed it in a new account that earns 6% compounded annually. Find the total amount after 5 years.

ps (delta math)

Answer 1

$44,492.33

Explanation:

Compound Interest Formula

• A = P (1 + r/n)^(nt)

1. A = amount of interest
2. P = Principal
3. r = interest rate (in decimals)
4. n = number of times interest is compounded
5. t = number of years

Solving

• A = (32,500)(1 + 0.06/1)⁵
• A = (32,500)(1.06)⁵
• A = (32,500)(1.33822558)
• A = $44,492.33 (nearest cent)