Question

Sue now has $125. how much would she have after 7 years if she leaves it invested at 8.5% with annual compounding?

Answer 1

the formula would be

`A=P(1+r)^t`
A=final amount
P=present amount
r=rate in decaimal
t=time in years


ok,
P=125
r=8.5%=0.085
t=7


`A=125(1+0.085)^7`

`A=125(1.085)^7`
use calculator
A=221.268
round to nearet cent

A=$221.27