Question

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

Answer 1

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  

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