Question

Meldre put $5000 in a savings account that pays 1.25% interest compounded yearly. How much money will be in the account 10 years later if she makes no more deposits or withdrawals?

Answer 1

`~~~~~~ \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 &\$5000\\r=rate\to 1.25\%\to (1.25)/(100)\dotfill &0.0125\\n=\begin{array}{llll}\textit{times it compounds per year}\\\textit{yearly, thus once}\end{array}\dotfill &1\\t=years\dotfill &10\end{cases}\\\\\\A=5000\left(1+(0.0125)/(1)\right)^(1\cdot 10)\implies A=5000(1.0125)^(10)\implies A\approx 5661.35`