Chris Mann will deposit $22,400 into an account today that earns 10% per year compounded annually.Using the following factors, what is the amount that will be in the account at the end of the 5 years?
A) $36,075
B)$13,909
C)$27,351
D)$18,681

Question

Chris Mann will deposit $22,400 into an account today that earns 10% per year compounded annually.Using the following factors, what is the amount that will be in the account at the end of the 5 years?
A) $36,075 
B)$13,909 
C)$27,351 
D)$18,681

Quizplus · Accepted Answer

We can use the compound interest formula A=P(1+r/n)^nt where A is the amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years. Substituting the given values, we get A=22400(1+0.1/1)^1*5 = $36,075.

Chris Mann Will Deposit $22,400 into an Account Today That