Question

Colin received a bonus check for $2,500. He is going to deposit the money into his bank account that receives 5.5% compounded annually. What is Colin’s account balance after 15 years?

Answer 1

Answer:

The amount Collin receives $3267.40 after 5 years .

Option C is correct.

Step-by-step explanation:

Formula

Amount=p(1+r)^t

Where P is the principle , r is the rate of interest in the decimal form and t is the time .

As given

Colin received a bonus check for 2,500.

Collin is going to deposit the money into his bank account that receives 5.5% compounded annually for 5 years .

P = $2500

5.5% is written in the decimal form

5.5/100

= 0.055

r = 0.055

t = 5 years

Put all the values in the above formula

Amount=2500(1+0.055)^5

Amount=2500(1+0.055)^5

Amount=2500(1.055)^5

Amount=2500x1.30696

Amount = $3267.40

Therefore the amount Collin receives $3267.40 after 5 years .

Option C is correct .

sorry for the mess but hope this helps!