Question

An account pays 6% compound interest. In year 1, the amount in the account is $70. How much is in the account in year 5?

Answer 1

Answer:

$91 is the answer.

Step-by-step explanation:

R = 6%

P = $70

T = 5 year

now

I = PTR/100

=(70×5×6)100

= 2100/100

= $21

So,

I = A-P

21 = A-70

21+70 = A

so, A = $91