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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
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