Dusty won $125,000 on the Who Wants to be a Zillionaire? Game show. He decides to place the money into an account that earns 6.25% interest compounded annually and plans not to use any of it until he retires.

Complete question :

Dusty won $125,000 on the Who Wants to be a Zillionaire? game show. He decides to place the money into an account that earns 6.25% interest compounded annually and plans not to use any of it until he retires. a. Write an equation that represents the amount of money Dusty will have in n years. b. How much money will be in the account when he retires in 23 years?

A = 125000(1.0625)^n ;

$504052.30

Step-by-step explanation:

Going by the compound interest formula :

A = P(1 + r/n)^nt

Here, P = amount won ; A = final amount ; r = interest rate = 6.25% = 0.0625 ; n = 1 ; t = number of years

Hence, the amojt of money, A Dusty will. Have in n years ;

A = 125000(1 + 0.0625)^n

A = 125000(1.0625)^n

Amount he'll have in 23 years

n = 23

A = 125000(1.0625)^23

A = 125000 * 4.03241

A = $504052.30

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