algebra Math questions

Question

A principal of $3900

is invested at 7.5%

interest, compounded annually. How much will the investment be worth after 5

years? =

Answer 1

If S_o is the amount invested, & S is the amount at the end of 5 years I = the interest rate, then

S = S_o(1 + .075)⁵ = $3,900(1.436) = $5,598.95