Question

6900 dollars is placed in an account with an annual interest rate of 8.25%. how much will be in the account after 26 years, to the nearest cent?

Explanation:

Step1: Identify compound interest formula

Assuming annual compounding (standard for such problems), the formula is:
$$A = P(1 + r)^t$$
Where:

• $A$ = final amount
• $P = 6900$ (principal)
• $r = 0.0825$ (annual rate)
• $t = 26$ (time in years)

Step2: Substitute values into formula

$$A = 6900(1 + 0.0825)^{26}$$

Step3: Calculate the growth factor

First compute $1.0825^{26} \approx 7.3480$

Step4: Compute final amount

$$A = 6900 \times 7.3480 \approx 50701.20$$

Answer:

$50701.20$