SOLUTION: The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Principal= $9000 Rate= 5% Compounded= annually Time=

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Question 1204308: The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate.
Principal= $9000
Rate= 5%
Compounded= annually
Time= 5 years

A. Find how much money there will be in the account after the given number of years.
B. Find the interest earned.

Found 2 solutions by mananth, ikleyn:
Answer by mananth(16946)   (Show Source): You can put this solution on YOUR website!
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate.
Principal= $9000
Rate= 5%
Compounded= annually
Time= 5 years
A. Find how much money there will be in the account after the given number of years.
B. Find the interest earned.
Compound Interest formula




A = the future amount of money
P = the principal amount= ($9,000)
r = the annual interest 5% = 0.05
n = n = 1)
t = (5 years)
Plug the values in the formula


= 11486.53
There will be $11,486.53 in the account after 5 years.

subtract the principal from the future amount to get interest.



Answer by ikleyn(52781)   (Show Source): You can put this solution on YOUR website!
.

To see many other similar  (and different)  solved problems on compounded interest accounts,  look into the lesson
    - Compounded interest percentage problems
in this site.

Learn the subject from there.



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