Question

Bevo has $5000 to invest. Bank A offers a savings account that has an APR of 1.15% and compounds monthly. Which equation will determine how much money Bevo will have in his account after 9 years?

Answer 1

The equation $A=5000(1.000958333)^{108}$ will determine how much money Bevo will have in his account after 9 years

Step-by-step explanation:

The formula for compound interest, including principal sum is

$A=P(1+\frac{r}{n})^{nt}$ , where:

• A is the future value of the investment/loan, including interest
• P is the principal investment amount (the initial deposit or loan amount)
• r is the annual interest rate (decimal)
• n is the number of times that interest is compounded per unit t
• t is the time the money is invested or borrowed for

Bevo has $5000 to invest. Bank A offers a savings account that has an APR of 1.15% and compounds monthly

We need to find Which equation will determine how much money Bevo will have in his account after 9 years

Because there is no choices we will write the equation

∵ Bevo has $5000 to invest

∴ P = 5000

∵ Bank A offers a savings account that has an APR of 1.15%

   and compounds monthly

∴ r = 1.15% = 1.15 ÷ 100 = 0.0115

∴ n = 12 ⇒ compounds monthly

∵ t = 9

- Substitute all of theses values in the formula below

∵ $A=P(1+\frac{r}{n})^{nt}$

∴ $A=5000(1+\frac{0.0115}{12})^{(12)(9)}$

∴ $A=5000(1.000958333)^{108}$

The equation $A=5000(1.000958333)^{108}$ will determine how much money Bevo will have in his account after 9 years

Learn more:

You can learn more about the interest compound monthly in brainly.com/question/4361464

#LearnwithBrainly