Answered

Pablo has $5,483 in a savings account. The interest rate is 5%, compounded annually.

To the nearest cent, how much will he have in 3 years?

(compound interest formu)

Answer :

mhanifa

Answer:

  • $6347.26

Step-by-step explanation:

Given:

  • Initial amount P = 5483
  • Interest rate r = 5% or 0.05
  • Compound number n = 1
  • Time t = 3 years

Find the total amount in 3 years:

  • [tex]A = P(1+r/n)^{nt}[/tex]
  • [tex]A = 5483*(1+0.05/1)^{1*3}=5483*(1.05)^3 = 6347.26[/tex]

[tex]\tt\red{\overbrace{\underbrace{\tt\color{orange}{ANSWER}}}}[/tex]

Here we've been given,

  • Principal amount (p) = $5843

  • Compound number (n) = 1

  • Rate of Interest (r) = 5% = 5 × 1/100 = 0.05

  • Time (t) = 3 years

  • A = ?

The standard formula for Compound interest (C.P) is given by,

[tex]:\implies\tt{A = p( { \frac{1 + r}{n} )}^{n \times t} } \\ \\ \\ :\implies\tt{A = 5483( { \frac{1 + 0.05}{1}) }^{1 \times 3} } \\ \\ \\ :\implies\tt{A = 5483 \times {1.05}^{3} } \\ \\ \\ :\implies\tt{A = 6347.26}[/tex]

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