Answer:
The total value of the account after 3 years will be $5,503.52.
Explanation:
A loan or deposit's interest is computed using the starting principle and the interest payments from the ago decade as compound interest.
We know that the compound interest is given as
A = P(1 + r)ⁿ
Where A is the amount, P is the initial amount, r is the rate of interest, and n is the number of years.
Tyler's bank account pays a straightforward yearly financing cost of 3.25%. Assume he stores $5,000 in the record and sets aside no extra installments or withdrawals for a long time.
The total value of the account after 3 years will be calculated as,
A = $5,000(1 + 0.0325)³
A = $5,000 x (1.0325)³
A = $5,000 x 1.1007
A = $5,503.52
The total value of the account after 3 years will be $5,503.52.