Question

7800 dollars is placed in an account with an annual interest rate of 6.5%. how much will be in the account after 29 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 $P = 7800$, $r = 0.065$, $t = 29$

Step2: Substitute values into formula

$$A = 7800(1 + 0.065)^{29}$$

Step3: Calculate the growth factor

$$1.065^{29} \approx 5.6682$$

Step4: Compute final amount

$$A = 7800 \times 5.6682 \approx 44211.96$$

Answer:

$44211.96$