## If you deposit \$8,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years? Do not round interm

Question

If you deposit \$8,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.

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1 month 2021-10-16T21:48:55+00:00 2 Answers 0 views 0

Step-by-step explanation:

Assuming the interest was compounded annually, we would apply 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 = 8000

r = 10% = 10/100 = 0.1

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

t = 5 years

Therefore,

A = 8000(1+0.1/1)^1 × 5

A = 8000(1.1)^5

A = \$12884.1