Question

jake has an account that is compounded every month at a rate of 3.5%.if he invests $20,000,what will the balance be after 5 years

Answer 1

The formula that you will use is I = P*r*t so first you put in your numbers I = (20,000)(3.5%)(5)
You can’t have 3.5 as your rate so you divide that by 100 and you will get 0.035 and then you multiply 20,000 x 0.035 x 5 and you will get 3,500

Jake’s balance will be $3,500 after 5 years