Answer: $1,610.51
Step-by-step explanation:
The total account value can be calculated using the formula:
A = P(1 + r/n)^(nt)
Where:
- A is the total account value
- P is the principal amount, which is $1,000.00
- r is the annual interest rate, which is 10% or 0.1
- n is the number of times the interest is compounded per year, which is usually 12 (monthly)
- t is the time period in years, which is 5
Using this formula, the total account value would be:
A = 1000(1 + 0.1/12)^(12*5)
A = $1,610.51
Therefore, the total account value after 5 years with a principal of $1,000.00 and 10% interest would be $1,610.51.