Question

12. 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

We know that, Final Amount in Compound Interest is given by :

$\bigstar\;\;\boxed{\mathsf{Amount = Principal\left(1 + \dfrac{Rate\;of\;interest}{100}\right)^{Number\;of\;Years}}}$

Given :

●  Principal = $5000

●  Rate of interest = 1.25

●  Number of Years = 10

Substituting the values in the Formula, We get :

$\implies \mathsf{Amount = 5000\left(1 + \dfrac{1.25}{100}\right)^{10}}$

$\implies \mathsf{Amount = 5000\left(1 + \dfrac{0.25}{20}\right)^{10}}$

$\implies \mathsf{Amount = 5000\left(1 + \dfrac{0.05}{4}\right)^{10}}$

$\implies \mathsf{Amount = 5000\left(\dfrac{4.05}{4}\right)^{10}}$

$\implies \mathsf{Amount = 5000\times (1.0125)^{10}}$

$\implies \mathsf{Amount = 5661.354}$

Answer : $5661.354 money will be in the account 10 years later

Answer 2

Answer: $5,661.35

Step-by-step explanation:

I used the exponential growth formula to get my answer.