Ming is a realtor. She earned 6200 in commission from the sale of a property. Ming invested the commission in a 5 yr GIC, that paid 2.7% compunded annually. How much will ming have after 5 yrs

To determine how much Ming will have after 5 years from her investment, we will use the formula for compound interest:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the amount of money after the interest is applied.
- $P$ is the initial principal (Ming's commission).
- $r$ is the annual interest rate (as a decimal).
- $n$ is the number of times the interest is compounded per year.
- $t$ is the time in years.

In this case:
- $P = 6200$
- $r = 2.7\%$ or $0.027$
- $n = 1$ (since it's compounded annually)
- $t = 5$ years

Now we substitute the values into the formula:

\[
A = 6200 \left(1 + \frac{0.027}{1}\right)^{1 \times 5}
\]

Let's calculate this.After 5 years, Ming will have approximately \$7,083.43 from her initial investment of \$6,200.

Would you like more details on the calculation or any clarifications? 

Here are some related questions for further exploration:
1. What if the interest rate was compounded monthly instead of annually?
2. How much interest did Ming earn over the 5 years?
3. How would the total change if the interest rate was higher, say 3%?
4. What would be the future value if the investment period was 10 years instead of 5?
5. How does compounding frequency affect the final amount in the investment?

**Tip**: The more frequently interest is compounded, the greater the final amount!

Ming is a realtor. She earned 6200 in commission from the sale of a property. Ming invested the commission in a 5-year GIC that paid 2.7% compounded annually. How much will Ming have after 5 years?

Learn how to calculate the future value of a 5-year investment with a 2.7% annual interest rate compounded annually. This example shows how Ming's commission of $6,200 grows to $7,083.43, covering key concepts in compound interest and exponential growth. Suitable for high school students in Grades 10-12.

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