question 5 of 20\njames invests $20,000 in an account that offers a compound interest rate of 8.3% per year…

question 5 of 20\njames invests $20,000 in an account that offers a compound interest rate of 8.3% per year. which of the following is the correct equation for how much james will have in year 6?\na. $a(6)=20,000cdot(1 + 0.083)^{6 + 1}$\nb. $a(6)=20,000cdot(1 + 0.083)^{6 - 1}$\nc. $a(6)=20,000cdot(1 + 0.83)^{6 - 1}$\nd. $a(6)=20,000cdot(1 + 0.083)^{6}$

question 5 of 20\njames invests $20,000 in an account that offers a compound interest rate of 8.3% per year. which of the following is the correct equation for how much james will have in year 6?\na. $a(6)=20,000cdot(1 + 0.083)^{6 + 1}$\nb. $a(6)=20,000cdot(1 + 0.083)^{6 - 1}$\nc. $a(6)=20,000cdot(1 + 0.83)^{6 - 1}$\nd. $a(6)=20,000cdot(1 + 0.083)^{6}$

Answer

Explanation:

Step1: Recall 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: Identify values

Here, $P=$20000$, $r = 8.3%=0.083$, and $t = 6$.

Step3: Substitute values into formula

Substituting the values into the formula, we get $A(6)=20000\times(1 + 0.083)^6$.

Answer:

D. $A(6)=20000\times(1 + 0.083)^6$