Question

Mario invested $6,000 in an account that pays 5% annual interest compounded annually. Using the formula A = P(1 + r)t, what is the approximate value of the account after 2.5 years?

$6,075
$6,118
$6,456
$6,778

Answer 1

$6,778

Explanation:

A = P(1 + r)^t

A = 6000(1 + 0.05)^2.5

A = 6778.36

Answer: $6,778