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Meldre 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?

Sagot :

[tex]~~~~~~ \textit{Compound Interest Earned Amount}\\\\A=P\left(1+\frac{r}{n}\right)^{nt}\quad\begin{cases}A=\textit{accumulated amount}\\P=\textit{original amount deposited}\dotfill &\$5000\\r=rate\to 1.25\%\to \frac{1.25}{100}\dotfill &0.0125\\n=\begin{array}{llll}\textit{times it compounds per year}\\\textit{yearly, thus once}\end{array}\dotfill &1\\t=years\dotfill &10\end{cases}\\\\\\A=5000\left(1+\frac{0.0125}{1}\right)^{1\cdot 10}\implies A=5000(1.0125)^{10}\implies A\approx 5661.35[/tex]