Question

The amount of money, A, accrued at the end of n years when a certain amount, P, is invested at a compound annual rate, r, is given A=P(1+r)^x. If a person invests $310 in an account that pays 8% interest compounded annually, find the balance after 5 years.
A) $455
B)$2790
C)$13,950
D)$443

Answer 1

you can use the formula \( \bf A=P(1+r)^x \)
Plug in r = 8% = .08
x here is the same as n