Mario invested $6,000 in an account that pays 5% annual interest compounded annually. Using the formula a = p(1 + r)t, what is t

Question

1 year ago

15

he approximate value of the account after 2. 5 years? $6,075 $6,118 $6,456 $6,778.

1 answer:

Katen [24] · Answer 1 · 2024-09-20T05:02:34+03:00

The approximate value of the account after 5 years will be $6778.

Given that,

Mario put $6,000 into a savings account that accrues interest at a rate of 5% per year.

The amount is given by,

A= p(1 + r)^t

P = 6000

R = 5%

T= 2.5 years

R = Rate of Interest

T= Time

P = Principal Amount

By substituting we get,

A= p(1 + r)^t

A = 6000(1 + 0.05)^2.5

A = 6000(1.05)^2.5

A = 6000 * 1.129

A = 6778.35

As a result, the account will roughly be worth $6778 after five years.

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