Question

George’s parents are saving for his college fund. They put $5,000 into an interest bearing account with a compound interest rate of 5.5%. George’s parents want to determine what the balance of his college fund account will be after 15 years. Using the formula A = P (1 + r) Superscript t, which is the correct substitution for the formula?

Answer 1

Answer:

see below

Step-by-step explanation:

A = P (1 + r) ^t

A is the amount in the account

P is the principle or the amount invested

r is the interest rate

t is the time

A = 5000 (1 + .055)^15

     5000(2.23247)

Rounding to 2 decimals since we round to the nearest penny

      11162.38