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?

Question

Mathematics

Angelo

17 June, 13:51

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?

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Answers (1)

Know the Answer?

Zaid Krause · Answer 1

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