Answer:
At the end of the 5 years, Edgar will have $10,343.27 in his savings account.
Step-by-step explanation:
For this problem we will be using the compound interest appreciation equation
A = P(1 + r)^t
Where P = starting amount of money
r = interest rate (in decimal format)
t = time, in this case, the number of years
If Edgar starts out with $8,922 in his savings, we will plug this number in for P in our equation.
He is gaining 3% interest each year, so we need to convert this into decimal format
3% / 100% = 0.03, this will be plugged in for r
Finally, t will be 5 years, as we are wondering how much money he will have accrued in that amount of time.
Our equation is then
A = 8,922 (1 + 0.03)^5
A = 8,922 (1.03)^5
A = 8,922 * 1.1593
A = 10,343.27
At the end of the 5 years, Edgar will have $10,343.27 in his savings account.
