Answer:
I believe the answer is $20,073.38
Step-by-step explanation:
Step 1: Find the percentage. The formula for annual compound interest is A = P(1 + r)^t, where A = amount (total amount), P = principal (initial amount), r = rate (percentage), and t = time (in years). Our rate is 6%, which is 0.06 in decimal form. Add it to 1. 1 + 0.06 is 1.06.
Step 2: Raise 1.06 to the 5th power. Because we are finding the amount in 5 years, we do that step. 1.06^5 is 1.3382255776.
Step 3: Do not delete the decimal from the calculator. Multiply it by 15,000 to find the total amount. When you do, you get 20,073.383664 or 20,073.38 when rounded to the nearest hundredth.
