The equation [tex]A=5000(1.000958333)^{108}[/tex] will determine how much money Bevo will have in his account after 9 years
Step-by-step explanation:
The formula for compound interest, including principal sum is
[tex]A=P(1+\frac{r}{n})^{nt}[/tex] , where:
Bevo has $5000 to invest. Bank A offers a savings account that has an APR of 1.15% and compounds monthly
We need to find Which equation will determine how much money Bevo will have in his account after 9 years
Because there is no choices we will write the equation
∵ Bevo has $5000 to invest
∴ P = 5000
∵ Bank A offers a savings account that has an APR of 1.15%
and compounds monthly
∴ r = 1.15% = 1.15 ÷ 100 = 0.0115
∴ n = 12 ⇒ compounds monthly
∵ t = 9
- Substitute all of theses values in the formula below
∵ [tex]A=P(1+\frac{r}{n})^{nt}[/tex]
∴ [tex]A=5000(1+\frac{0.0115}{12})^{(12)(9)}[/tex]
∴ [tex]A=5000(1.000958333)^{108}[/tex]
The equation [tex]A=5000(1.000958333)^{108}[/tex] will determine how much money Bevo will have in his account after 9 years
Learn more:
You can learn more about the interest compound monthly in brainly.com/question/4361464
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