Question

Colin received a bonus check for 2,500. He is going to deposit the money into his bank account that receives 5.5% compounded annually. What is Colin's account balance after 5 years?
A. $2,637.50
B. $6,327.50
C. $3,267.40
D. None of these choices

Answer 1

Amount  = 2500(1 + 0.055)^5  =   $3267.40

C

Answer 2

Answer:

The amount Collin receives $3267.40 after 5 years .

Option C is correct.

Step-by-step explanation:

Formula

$Amout = P (1 + r) ^{t}$

Where P is the principle , r is the rate of interest in the decimal form and t is the time .

As given

Colin received a bonus check for 2,500.

Collin is going to deposit the money into his bank account that receives 5.5% compounded annually for 5 years .

P = $2500

5.5% is written in the decimal form

$= \frac{5.5}{100}$

= 0.055

r = 0.055

t = 5 years

Put all the values in the above formula

$Amout =2500 (1 + 0.055) ^{5}$

$Amout =2500 (1 + 0.055) ^{5}$

$Amout =2500 (1.055) ^{5}$

$Amout =2500\times 1.30696$

Amount = $3267.40

Therefore the amount Collin receives $3267.40 after 5 years .

Option C is correct .