Question

67000 dollars is placed in an account with an annual interest rate of 8.25%. how much will be in the account after 28 years, to the nearest cent?

Answer 1

The Amount of money in the account after 28 years is $616,674.5

Explanation:

Given as :

The principal amount placed in the account = p = $67,000

The rate of interest = r = 8.25%

The time period of amount in the account = t = 28

Let the Amount of money in the account = $A

Now, From Compound Interest method

Amount = Principal ×
`(1+(\textrm rate)/(100))^(\textrm time)`

A = p ×
`(1+(\textrm r)/(100))^(\textrm t)`

Or, A = $67,000 ×
`(1+(\textrm 8.25)/(100))^(\textrm 28)`

Or, A = $67,000 ×
`(1.0825)^(28)`

Or, A = $67,000 × 9.2041

∴ A = $616,674.7

So, The Amount of money in the account = A = $616,674.5

Hence, The Amount of money in the account after 28 years is $616,674.5 Answer