Aiden has $6,000 in an account. The interest rate is 5% compounded annually.
To the nearest cent, how much will he have in 5 years?
Use the formula B=p(1+r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

We are given:

- $ p = 6000 $ (the principal amount)
- $ r = 0.05 $ (the interest rate, 5% expressed as a decimal)
- $ t = 5 $ years

The formula for compound interest is:

\[
B = p(1 + r)^t
\]

Substituting the values into the formula:

\[
B = 6000(1 + 0.05)^5 = 6000(1.05)^5
\]

Now, let's calculate $ (1.05)^5 $ and multiply the result by 6000.

\[
B = 6000 \times 1.2762815625 = 7657.69
\]

So, Aiden will have **$7,657.69** in 5 years, to the nearest cent.

Would you like more details or have any questions?

Here are 5 related questions:
1. What would the balance be after 10 years with the same interest rate?
2. How would the balance change if the interest was compounded monthly?
3. How much interest will Aiden earn after 5 years?
4. What would the balance be if the interest rate were 7% instead of 5%?
5. How does compounding frequency affect the final amount?

**Tip:** The more frequently interest is compounded, the greater the total interest accrued!

Aiden has $6,000 in an account. The interest rate is 5% compounded annually. To the nearest cent, how much will he have in 5 years? Use the formula B=p(1+r)^t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Find out how much Aiden's $6,000 grows with 5% interest compounded annually over 5 years using the compound interest formula. This detailed solution shows step-by-step calculations for exponential growth, suitable for Grades 9-11.

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