Question

PLZ ANSWER FASTTTTT (70 POINTSSSS)

Your parents deposited $1,500 into a new college fund that will earn an annual compound interest rate of 3%. How much money will be in the account when you need it for college in 5 years? (write and use the compound interest formula)

THANK YOU!!

Answer 1

• $1738.91

Explanation:

Given

• Deposit: P = $1500
• Interest rate: r = 3% = 0.03 compounded
• Time: t = 5 years
• Compound number: n =1 per year
• Final amount A= ?

Formula for compound interest is:

• A = P(1 + r/n)^nt

Substituting values

• A = 1500(1 + 0.03/1)^1*5 =
• 1500(1.03^5) =
• $1738.91