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Anna007 [38]
1 year ago
6

There is $10000 in an account that pays 5% interest per year. The interest is added to the total in the account at the end of ea

ch year. How much money will be in the account at the end of each year?
Year 1:

Year 2:

Year 3:

Mathematics
1 answer:
SSSSS [86.1K]1 year ago
4 0

The value of the account at the end of 1 year is $10,500

The value of the account at the end of 2 years is $11,025

The value of the account at the end of 3 years is $11,576.25

<h3>What is the total at the end of the years?</h3>

If the amount of interest that is added into the account at the end of the year. Both the initial amount in the account and the interest that has already been earned would increase in value each year. This is known as compound interest.

The formula that can be used to determine compound interest is:

FV = P (1 + r)^n

Where:

FV = Future value

P = Present value

R = interest rate

N = number of years

Value of the account at the end of 1 year: 10,000 x (1.05) = $10,500

Value of the account at the end of 2 years: 10,000 x (1.05²) = $11,025

Value of the account at the end of 3 years: 10,000 x (1.05³) = $11,576.25

To learn more about future value, please check: brainly.com/question/18760477

#SPJ1

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