Respuesta :
Answer:
$10,154
Step-by-step explanation:
A person invested $5,500 in an account growing at a rate allowing the money to double every 13 years. How much money would be in the account after 11 years, to the nearest dollar
Step 1
We calculate the rate.
A person invested $5,500 in an account growing at a rate allowing the money to double every 13 years.
The double of $5,500 = $11,000
Hence,
A = Amount after t years = $11,000
P = Principal = $5,500
Time = 13 years
Rate =??
Formula to find rate =
Equation:
r = (1/t)(A/P - 1)
Solving our equation:
r = (1/13)((11000/5500) - 1) = 0.07692308
r = 0.07692308
Converting r decimal to R a percentage
R = 0.07692308 * 100 = 7.6923%/year
Approximately = 7.69%
Step 2
How much money would be in the account after 11 years, to the nearest dollar
We solve for A
Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 7.6923%/100 = 0.076923 per year.
Solving our equation:
A = 5500(1 + (0.076923 × 11)) = 10153.8415
A = $10,153.84
Approximately = $10,154
Therefore, there would be $10,154 left in the account after 11 years.
