Use the formula B = p(1.08)n to find the balance B (in dollars and cents) for a principal p invested at a compound interest rate

Question

3 years ago

13

of 8% for n years. $50 invested for 5 years a. $83.67 c. $67.34 b. $101.24 d. $73.47

1 answer:

aalyn [17] · Answer 1 · 2022-06-17T22:26:27+03:00

Answer:

Option D. $\$73.47$

Step-by-step explanation:

In this problem

we have

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

where

B is the Final Investment Value or a Balance

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

in this problem we have

$t=5\ years\\ P=\$50\\ r=0.08$

substitute in the formula above

$B=\$50(1+0.08)^{5}=\$73.47$