Question

you plan to deposit $56,250 into a savings account that has a 5.49% interest rate compounded annually. what will be the balance of your savings account after 17 years? use this formula: $a = p(1 + \frac{r}{n})^{nt}$ enter the dollar amount rounded to the nearest cent. your answer: answer

Explanation:

Step1: Identify the values

Given \( P = 56250 \), \( r = 5.49\% = 0.0549 \), \( n = 1 \) (compounded annually), \( t = 17 \).

Step2: Substitute into the formula

Using the compound - interest formula \( A = P(1+\frac{r}{n})^{nt} \), substitute the values:
\( A = 56250\times(1 + \frac{0.0549}{1})^{1\times17} \)
\( A = 56250\times(1 + 0.0549)^{17} \)
\( A = 56250\times(1.0549)^{17} \)
First, calculate \( (1.0549)^{17} \approx 2.4744 \) (using a calculator to find the power of 1.0549 raised to 17)
Then, \( A=56250\times2.4744 \)
\( A = 56250\times2.4744=139235.0 \) (rounded to the nearest cent)

Answer:

\( \$139235.00 \)