Question

Esther deposited $5,000 into an account that grows at a rate of 8% per year. To the nearest cent, how much will be in the

Answer 1

Answer:

The total amount after five years =  $7,000

Step-by-step explanation:

Step(i):-

Given Esther deposited $5,000 into an account

Principal amount 'P' = 5000

Given rate of interest (R) = 8%

r = R / 100 = 0.08 per year

Step(ii):-

The total amount after 5 years

            $A = P( 1 + r t )$

          $A = 5000(1+ (0.08 X 5) = 7000$

Final answer:-

The total amount after five years =  $7,000