5. Melanie put $5000 in a savings account that pays 1.25% interest compounded yearly. How much money will be in the account 10 years later i

Question

5. Melanie put $5000 in a savings account that pays 1.25% interest compounded yearly. How much money will be in the account 10 years later if she makes no more deposits or withdrawals?

in progress 0
Ximena 2 months 2021-10-13T23:25:57+00:00 1 Answer 0 views 0

Answers ( )

    0
    2021-10-13T23:27:17+00:00

    Answer: $5661 will be in the account 10 years later

    Step-by-step explanation:

    We would apply the formula for determining compound interest which is expressed as

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

    Where

    A = total amount in the account at the end of t years

    r represents the interest rate.

    n represents the periodic interval at which it was compounded.

    P represents the principal or initial amount deposited

    From the information given,

    P = 5000

    r = 1.25% = 1.25/100 = 0.0125

    n = 1 because it was compounded once in a year.

    t = 10 years

    Therefore,

    A = 5000(1 + 0.0125/1)^1 × 10

    A = 5000(1.0125)^10

    A = 5000(1.0125)^10

    A = $5661

Leave an answer

45:7+7-4:2-5:5*4+35:2 =? ( )