Question

Aiden has $6,000 in an account. The interest rate is 5% compounded annually. To the nearest cent, how much will he have in 5 years?

Answer 1

$7,657.69

Explanation:

To find this, use the interest formula:

`A = P(1+r)^(t)`
A = final amount

P = principal amount ($6,000)

r = interest rate (5% or 0.05)

t = time (5 years)

Given this formula, we can plug in the information and find how much Aiden has after 5 years:

`A = 6000(1+0.05)^(5)`

`A = 6000(1.05)^(5)`

`A = 7657.69`

Therefore, after 5 years Aiden will have $7,657.69.

I hope this helps! Good luck!