Question

An initial amount of $800 is invested in a compound savings account with an annual interest rate of 4.5%. Using the formula A+P(1+r)^t what is the balance after five years?
$836.00
$873.62
$980.00
$996.95

Answer 1

800×(1+0.045)^(5)
=996.95
.......

Answer 2

Answer:

The amount after 5 years becomes $996.95 .

Step-by-step explanation:

Formula

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

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

As given

An initial amount of $800 is invested in a compound savings account with an annual interest rate of 4.5% for 5 years .

P = $800

4.5%  is written in the decimal form

$= \frac{4.5}{100}$

= 0.045

t = 5 years

Put all the values in the formula

$Amount = 800(1+0.045)^{5}$

$Amount = 800(1.045)^{5}$

$Amount = 800\times 1.24618$

Amount = $996.95 (Approx)

Therefore the amount after 5 years becomes $996.95 .