Lolita deposited $500 in her savings account that earns 5% annually. She forgot about it until 15 years later when she came across an old bank statement. How much will be in her account now? Explain

Question

Mathematics

Jermaine Gaines

14 June, 20:25

Lolita deposited $500 in her savings account that earns 5% annually. She forgot about it until 15 years later when she came across an old bank statement. How much will be in her account now? Explain

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Answers (1)

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Andrew Cervantes · Answer 1

The formula for yearly annual interest is A = S (1+r) ^t

A is the answer. S is the given amount, AKA the starting amount. r is the rate in which it increases or decreases. It increases because you add 1 to the rate. If you were to decrease the amount, then of course you would subtract 1 from the rate. t is the amount of years that have gone by.

Now we must substitute the given numbers.

A = 500 (1 +.05) ^15

The. 05 came from dividing the rate by 100, since it is 5 percent. If it's percent, the number is always divided by 100.

You get a calculator and the answer will be 1039.46.

$1039.46 is the amount of money she would come across by.