Question

Mario invested $6,000 in an account that pays 5% annual interest compounded annually. Using the formula A = P(1 + r)^t, what is the approximate value of the account after 2.5 years?

Answer 1

they give you A = P(1 + r)^t
A is the value after the interest is applied (so the value you are solving for)

P is given as 6,000
r is the interest rate as a decimal (0.05)
t is time (2.5 years)