aiden has $6,000 in an account. the interest ...
aiden has $6,000 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much will he have in 5 years? $
Answer
# Explanation:
## Step1: Identify compound - interest formula
The compound - interest formula is $A = P(1 + r)^t$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.
## Step2: Convert the interest rate to decimal
Given $r = 5\%=0.05$, $P=\$6000$, and $t = 5$ years.
## Step3: Substitute values into the formula
$A=6000\times(1 + 0.05)^5$.
First, calculate $(1 + 0.05)^5=(1.05)^5$.
$(1.05)^5=1.05\times1.05\times1.05\times1.05\times1.05 = 1.27628$.
Then, $A = 6000\times1.27628=7657.68$.
# Answer:
$7657.68$