Question

You deposit $5000 each year into an account earning 2% interest compounded annually. How much will you have in the account in 35 years?

Answer 1

50313.28

See the below process

Explanation:

Important formulae

A=Total Amount

P=Principal or amount of money deposit

R=Annual interest rate

N=Number of Times compounded per year

T=Time in years

For the formula:

`a \: is \: equals \: to \: p(1 + (r)/(n)) \: n - t \\ p \: is \: equals \: to \: 5000 \: dollars \: comma \: r \: s \: equals \: to \: 8\% \: comma \: n \: is \: equals \: to \: 1 \: and \: t \: is \:equals \: to \: 30 \: years \:`

Solution:

A=5000(1+0.08 /1) to the power 1.30

5000×10.062657

Answer= 50313.28

-Thank You By MrIshaan