Answer: Choice D) $32,977.84
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Explanation:
The formula you'll use is
F = P*(1+r)^t
where
F = final amount
P = initial amount
r = growth rate (in decimal form)
t = time in years
In this case,
F = unknown (this is what we're trying to figure out)
P = 25839
r = 0.05 (since 5% = 5/100 = 0.05)
t = 5
Plug those three known values into the formula and evaluate
F = P*(1+r)^t
F = 25839*(1+0.05)^5
F = 25839*(1.05)^5
F = 25839*1.2762815625
F = 32977.8392934376
F = 32977.84 ........... round to the nearest penny
