Question

Suppose $800 is invested into an account that pays 3.5% interest, compounded annually. What is the balance in the account after 5 years?

Answer 1

$950.15 A=800(1+.035)^5

Answer 2

A = P (1 + r/n)^(nt)
= 800 (1+ 0.035/1)^(1*5)
= 800 (1.035)^5
= 950.15

answer: $950.15 is the balance in the account after 5 years