1. find the bank account balance if the account starts with $360, has an annual rate of 6%, and the money is…

1. find the bank account balance if the account starts with $360, has an annual rate of 6%, and the money is left in the account for 5 years. (round your answer to the nearest whole)\na) $380\nb) $482\nc) $522\nd) $544

1. find the bank account balance if the account starts with $360, has an annual rate of 6%, and the money is left in the account for 5 years. (round your answer to the nearest whole)\na) $380\nb) $482\nc) $522\nd) $544

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

The annual interest rate $r = 6%=0.06$, the principal amount $P = 360$, and the number of years $t = 5$.

Step3: Substitute values into the formula

$A=360\times(1 + 0.06)^5$. First, calculate $(1 + 0.06)^5=1.06^5\approx1.3382255776$. Then, $A = 360\times1.3382255776\approx481.761207936$.

Step4: Round the answer

Rounding $481.761207936$ to the nearest whole number gives $482$.

Answer:

B. $482$