Question

maria invested 2000 in an account that earns 4.5% interest, compounded annually. The formula for compound interest is A(t)=P(1+i)^t. How much did maria have in the account after 5 years

Answer 1

2492.36

Explanation:

`A(t)=P(1+i)^t`

P is the initial amount invested

i is the rate of interest

t is the number of years

maria invested 2000 in an account that earns 4.5% interest, compounded annually.

Initial amount P is 2000

interest 'i' is 4.5% =
`(4.5)/(100)= 0.045`

t= 5 years

`A(t)=P(1+i)^t`

Plug in all the values

`A(5)=2000(1+0.045)^5=2492.36`