With P = 100, r = 0.08, t = 5, the amount A is approximately which value?

With P = 100, r = 0.08, t = 5, the amount A is approximately which value?

• A. 100
• B. Approximately 146.93
• C. 120
• D. 200

Answer: (B)

This is about how money grows with compound interest using the formula A = P(1 + r)^t when interest is compounded once per year. With P = 100, r = 0.08, t = 5, the amount becomes 100 × (1.08)^5. Calculating (1.08)^5 step by step: (1.08)^2 = 1.1664, (1.08)^3 = 1.259712, (1.08)^4 = 1.36048896, and (1.08)^5 = 1.469327... Multiplying by 100 gives about 146.93. So the approximate amount is 146.93.

This is about how money grows with compound interest using the formula A = P(1 + r)^t when interest is compounded once per year. With P = 100, r = 0.08, t = 5, the amount becomes 100 × (1.08)^5. Calculating (1.08)^5 step by step: (1.08)^2 = 1.1664, (1.08)^3 = 1.259712, (1.08)^4 = 1.36048896, and (1.08)^5 = 1.469327... Multiplying by 100 gives about 146.93. So the approximate amount is 146.93.