Question

Ashley has $5,000 in an account that earns 5% interest compounded annually.To the nearest cent, how much will she have in 3 years?Use the formula B=p(1+r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.$

Answer 1

Solution

$A=P(1+\frac{r}{100})^n$

The amount she will have in 3yrs can be calculated as shown below

$\begin{gathered} A=5000(1+\frac{5}{100})^3 \\ \\ A=5000(1+0.05)^3 \\ \\ A=5788.125 \end{gathered}$

The answer is 578813 cents

The answer is $5788.125