P = P₀ (1 + r)ⁿ
= 1.17(1 + 0.09)⁵
= 1.17(1.09)⁵
= 1.17(1.5386)
= 1.80
Answer: $1.80
Note: If you don't know the formula, you could calculate each year.
Year 0: $1.17
Year 1: $1.17 + $1.17(0.09) = $1.2753
Year 2: $1.28 + $1.28(0.09) = $1.3948
Year 3: $1.39 + $1.39(0.09) = $1.5155
Year 4: $1.51 + $1.51(0.09) = $1.6464
Year 5: $1.65 + $1.65(0.09) = $1.7982 which rounds up to $1.80
