Stefan is saving up money to buy a car. Stefan puts 5, 000.00 into an account which earns 13% interest, compounded annually. How much will he have in the account after 10 years? Round your answer to the nearest cent.

Solution

Solution

Amount : 16972.84

Solution steps

Translate the problem into an equation:

A = 5000 (1 + \frac{0.13}{1})^{1 \cdot 10}

5000 (1 + \frac{0.13}{1})^{1 \cdot 10} = 16972.83694 \dots

Round to the nearest hundredth:

16972.84

Amount : 16972.84

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