Three years ago, Andy invested $5,000 in an account that earns 5% interest compounded annually. The equation y=5,000(1.05) describes the balance in the account, where x is the time in years. Andy has made no additional deposits and no withdrawals. How much is in the account now?

Question

Three years ago, Andy invested $5,000 in an account that earns 5% interest compounded annually.  The equation y=5,000(1.05) describes the balance in the account, where x is the time in years.  Andy has made no additional deposits and no withdrawals.  How much is in the account now?

owlfred · Answer

Hoot! You just asked your first question! Hang tight while I find people to answer it for you. You can thank people who give you good answers by clicking the 'Good Answer' button on the right!

anonymous · Answer

i think it is 156

anonymous · Answer

thanks for trying to help, but that isn't an answer choice. 
the choices are 5,788.13, 5,750.00, 5,470.19, 5,250.26.

slaaibak · Answer

5788.13

anonymous · Answer

thanks slaaibak, care to explain how you got that?

slaaibak · Answer

Sure.

Future Value = Present Value * (1.05)^years

so Future Value (What you have now since you invested three years ago)

Present value is the value 3 years ago

FV = 5000(1.05)^3
FV = 5788.13

anonymous · Answer

you rock :)