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Carson grew up to be one of Texas most prominent real estate investor. Carson took $32,500 he made on the sale of a home and placed it in a new account that earns 6% compounded annually. Find the total amount after 5 years.



ps (delta math)

Answer :

Answer:

$44,492.33

Step-by-step explanation:

Compound Interest Formula

  • A = P (1 + r/n)^(nt)
  1. A = amount of interest
  2. P = Principal
  3. r = interest rate (in decimals)
  4. n = number of times interest is compounded
  5. t = number of years

Solving

  • A = (32,500)(1 + 0.06/1)⁵
  • A = (32,500)(1.06)⁵
  • A = (32,500)(1.33822558)
  • A = $44,492.33 (nearest cent)

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