Question

An initial deposit of $5,000 is made into a savings account that compounds 3% interest annually. How much is in the account at the end of 5 years?

how do I set this up

Answer 1

find how much 3% of $5000 is. Then multiply the 3% by five and add it to 5000. I hope that didn’t sound confusing.

Answer 2

Answer:

5809.171

Step-by-step explanation:

Formula A=P*e^rt

A= unknown

P= initial 5,000

r= rate 3% or 0.03

t= time 5

A=5,000*e^(0.03 * 5)

A= 5809.171 approximately