Question

Jack deposited $47,323.15 in an account earning 5% interest compounded annually.
To the nearest cent, how much interest will he earn in 3 years?

Answer 1

Answer:

Jack's final bank account amount will be $54,782.50, earning $7,459.31 in interest.

General Formulas and Concepts:
Algebra I

Compounded Interest Rate Formula: $\displaystyle A = P \bigg( 1 + \frac{r}{n} \bigg) ^{nt}$

• A is final amount
• P is principle amount
• r is rate
• n is compounded rate
• t is time

Step-by-step explanation:

Step 1: Define

Identify given variables.

P = $47,323.15

r = 0.05

n = 1

t = 3

Step 2: Find Interest

1. [Compounded Interest Rate Formula] Substitute in variables:
   $\displaystyle A = 47323.15 \bigg( 1 + \frac{0.05}{1} \bigg) ^{1(3)}$
2. Evaluate:
   $\displaystyle A = \boxed{54782.5}$

∴ Jack will gain $7,459.31 and have a net balance of $54,782.50.

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Learn more about Algebra I: https://brainly.com/question/27710663

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Topic: Algebra I