Question

If you invest $2500 at a rate of 3.5%, how much money will be in the

account after 10 years if it is compounded yearly?

Answer 1

A = $3,526.50

Explanation:

First, convert R as a percent to r as a decimal

r =
`(R)/(100)`

r =
`(3.5)/(100)`

r = 0.035 rate per year,

Then solve the equation for A

A = P(1 +
`(r)/(n)`)nt

A = 2,500.00(1 +
`(0.035)/(1)`)(1)(10)

A = 2,500.00(1 + 0.035)(10)

A = $3,526.50

Hence:

The total amount of over 10 years is $3,526.50.