Question

The amount of money A, accrued at the end of n years when a certain amount, P is invested at a compound annual rate, r, is given by A=P(1+r)n. If a person invests $150 in a account that pays 10% interest compounded annually, find the balance after 5 years .

Answer 1

Answer:

$241.58

Step-by-step explanation:

he amount of money A, accrued at the end of n years when a certain amount, P is invested at a compound annual rate, r, is given by:

$A=P(1+r)^n$

From the given information:

P =$150

r=10%=0.1

n= 5 years

Therefore the balance after 5 years is:

$A=P(1+r)^n\\=150(1+0.1)^5\\=150*1.1^5\\=\ 241.58$