Christy M.

asked • 07/16/18

How much money will Bill have in the account in 7 years?

A bank features a savings account that has an annual interest rate of r=5.3% with interest compounded daily. Bill deposits $8,500 into the account.
The account balance can be modeled by the exponential formula A(t)=P(1+r/n)^nt , where A is the future value, P is the principal, r is the annual interest rate, n is the number of times each year that the interest is compounded, and t is the time (in years).
1) What values should be used for P, r, and n?
P=, r=, n=

2) How much money will Bill have in the account in 7 years?

Bill will have $___ in the account in 7 years.

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