Question

Mr.Zimmerman invested $25,000 in an account that draws 1.4 interest, compouneded annually. What is the total value of the account after 15 years

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$25000\\ r=rate\to 1.4\%\to (1.4)/(100)\dotfill &0.014\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{annually, thus once} \end{array}\dotfill &1\\ t=years\dotfill &15 \end{cases}`

`\bf A=25000\left(1+(0.014)/(1)\right)^(1\cdot 15)\implies A=25000(1.014)^(15)\implies A\approx 30797.0653`