Sanjay opened a savings account and deposited 1,803.00 as principal. The account earns 5% interest, compounded annually. What is the balance after 5 years?

Solution

Sanjay opened a savings account and deposited 1, 803.00 as principal. The account earns 5% interest, compounded annually. What is the balance after 5 years?

Solution

Amount : 2301.14

Solution steps

Translate the problem into an equation:

A = 1803 (1 + \frac{0.05}{1})^{1 \cdot 5}

1803 (1 + \frac{0.05}{1})^{1 \cdot 5} = 2301.13565 \dots

Round to the nearest hundredth:

2301.14

Amount : 2301.14

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