Answer:
$1.46
Step-by-step explanation:
We can use the principal of compound interest to solve this with the formula:
[tex]A = P(1+\frac{r}{n})^{nt}[/tex]
where P = initial principal
r = interest rate
n = number of times applied per time period
t = time periods elapsed
In this specific case, P = 0.55, r = 0.05, n = 1, and t =20
[tex]0.55(1+\frac{0.05}{1})^{1*20} = 0.55(1.05)^{20} = 0.55(2.65) = 1.46[/tex]
