Question

Maria invested $2000 in an account that earns 4.5% interest , compounded annually. The formula for compound interest is A(t) =P(1+l)×
How much did Maria have in the account after 5 years ?
A. $10,450.00
B. $2492.36
C. $2450.00
D. $12,819.47

Answer 1

Answer:

B. $2492.36

Step-by-step explanation:

We are given the formula for compound interest,

$A(t)=p(1+i)^x$ where p is the amount of principal, i is the interest rate and x is the number of years.

In our problem, p is 2000, i = 4.5% = 4.5/100 = 0.045, and x is 5:

$A(t)=2000(1+0.045)^x\\\\A(5)=2000(1.045)^5\approx 2492.36$

Answer 2

Maria will have $\ \ 2492.36$ in her account after $5$ years.

What is compound interest ?

Compound interest is the interest which is received on the principal and the previous interest.

Amount $=P(1+\frac{R}{100})^t$

We have,

Invested principal $=\ 2000$

Compound interest Rate $=4.5\%$

Time of investment $=5$ years

So,

Using the above mentioned formula;

Amount $=P(1+\frac{R}{100})^t$

              $=2000(1+\frac{4.5}{100})^5$

              $=2000(1+\frac{9}{200})^5$

              $=2000\ *\ (\frac{209}{200})^5$

Amount $=\ \ 2492.36$

So, Amount in Maria's account is $\ \ 2492.36$.

                       

Hence, we can say that Maria will have $\ \ 2492.36$ in her account after $5$ years.

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