Chris Mann will deposit $22,400 into an account today that earns 10% per year compounded annually.Using the following factors,what is the amount that will be in the account at the end of the 5 years?

Question

Quizplus · Accepted Answer

We can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where A is the amount, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years.
Here, P = $22,400, r = 10%, n = 1 (compounded annually), and t = 5 years.
Plugging these values into the formula, we get:
A = $22,400(1 + 0.1/1)^(1*5)
A = $22,400(1.10)^5
A = $36,075.17
Therefore, the amount that will be in the account at the end of the 5 years is $36,075. Answer choice A is the correct answer.

Chris Mann Will Deposit $22,400 into an Account Today That