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marin [14]
3 years ago
11

Julie deposited $500 into an account that earned 10% compound interest over 5 years. What is the account value earned after 5 ye

ars?
Mathematics
1 answer:
Rashid [163]3 years ago
5 0

Answer:

$821

Step-by-step explanation:

A = p (1 + r/n)^nt

Where,

A = future value

P = principal = $500

r = interest rate = 10% = 0.1

n = number of periods = 12

t = time = 5 years

A = p (1 + r/n)^nt

= 500 (1 + 0.1/12)^12*5

= 500 (1 + 0.0083)^60

= 500 (1.0083)^60

= 500 (1.6420)

= 821

A = $821

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