Question

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6700 dollars is placed in an account with an annual interest rate of 8%. how much will be in the account after 24 years, to the nearest cent?
answer attempt 5 out of 10
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Explanation:

Step1: Identify compound interest formula

The formula for compound interest (assuming annual compounding) is $A = P(1 + r)^t$, where $A$ is the amount, $P$ is principal, $r$ is annual rate, $t$ is time in years.

Step2: Plug in values

$P = 6700$, $r = 0.08$, $t = 24$. So $A = 6700(1 + 0.08)^{24}$.

Step3: Calculate $(1.08)^{24}$

$(1.08)^{24} \approx 6.341180737$.

Step4: Compute total amount

$A = 6700 \times 6.341180737 \approx 42485.91$.

Answer:

42485.91