joey is saving up money to buy a car. joey puts $9,304.00 into an account which earns 4% interest…

joey is saving up money to buy a car. joey puts $9,304.00 into an account which earns 4% interest, compounded annually. how much will he have in the account after 5 years? use the formula $a = p(1+\frac{r}{n})^{nt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, $n$ is the number of times per year that the interest is compounded, and $t$ is the time in years. round your answer to the nearest cent.

joey is saving up money to buy a car. joey puts $9,304.00 into an account which earns 4% interest, compounded annually. how much will he have in the account after 5 years? use the formula $a = p(1+\frac{r}{n})^{nt}$, where $a$ is the balance (final amount), $p$ is the principal (starting amount), $r$ is the interest rate expressed as a decimal, $n$ is the number of times per year that the interest is compounded, and $t$ is the time in years. round your answer to the nearest cent.

Answer

Explanation:

Step1: Identify the values

$P = 9304$, $r=0.04$ (since $4%=0.04$), $n = 1$ (compounded annually), $t = 5$

Step2: Substitute values into formula

$A=P(1 +\frac{r}{n})^{nt}=9304\times(1+\frac{0.04}{1})^{1\times5}$

Step3: Calculate the exponent part

$(1 + 0.04)^{5}=1.04^{5}=1.2166529024$

Step4: Calculate the final amount

$A=9304\times1.2166529024\approx11320.75$

Answer:

$11320.75$