Answer:
Therefore my account balance will be in 10 year=$6,750
Step-by-step explanation:
Simple interest: Simple interest is calculated on the same principal each year.
I= simple interest.
r = rate of interest per annum.
t= time
Compound interest: The principal is not same each year. The principal will change from the second year.
The principal of 2nd year = Principal+ interest of 1st year.
The principal of 3rd year = Principal of 2nd year+ interest of 2nd year.
and so on
The Amount
Here P= $5,000
r=3.5%
and t=10 years
=$1750
Therefore my account balance will be in 10 year=$(5,000+1750)=$6,750.
