Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.
Sagot :
Using compound interest, it is found that $20,581.36 will be in the account in 5 years.
What is compound interest?
The amount of money earned, in compound interest, after t years, is given by:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
In which:
- A(t) is the amount of money after t years.
- P is the principal(the initial sum of money).
- r is the interest rate(as a decimal value).
- n is the number of times that interest is compounded per year.
- t is the time in years for which the money is invested or borrowed.
In this problem:
- The initial deposit is of P = 19000.
- The rate is of r = 0.016.
- Monthly compounding, hence n = 12.
- 5 years, hence t = 5.
Then:
[tex]A(t) = P\left(1 + \frac{r}{n}\right)^{nt}[/tex]
[tex]A(5) = 19000\left(1 + \frac{0.016}{12}\right)^{12(5)}[/tex]
[tex]A(5) = 20581.36[/tex]
$20,581.36 will be in the account in 5 years.
You can learn more about compound interest at https://brainly.com/question/25781328
We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.
