Question

Janie deposits $5,000 into

an account that pays 3.7%
interest compounded
yearly. What is the
balance after 8 years?

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$5000\\ r=rate\to 3.7\%\to (3.7)/(100)\dotfill &0.037\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{year, thus once} \end{array}\dotfill &1\\ t=years\dotfill &8 \end{cases} \\\\\\ A = 5000\left(1+(0.037)/(1)\right)^(1\cdot 8)\implies A=5000(1.037)^8 \implies A \approx 6686.52`

Answer 2

6686.52

Explanation:

formula:A=P(1+r/100)^T

A=$5000(1+3.7%/100)^8

A=$5000(1+3.7%/100)^8A=6.686.518575674(ROUND OFF)

A=$5000(1+3.7%/100)^8A=6.686.518575674(ROUND OFF)A=6686.52