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erma4kov [3.2K]
3 years ago
7

If $10,000 is invested at a rate of 2.5 percent for 5 years, how much money is in the account at the end of the term?

Mathematics
1 answer:
vaieri [72.5K]3 years ago
4 0

Answer:

Step-by-step explanation:

  • Let's use the compound interest formula   :

\boxed{\large  \boldsymbol {\sf S= a\cdot  \ \bigg(  1+\frac{N}{100} \bigg)^{\bigg r} }}

  • Where a is the initial price ; N is the percentage at which we increase our price ; r is the years
  • We know that a=10000  ; N=2,5 %  ;  r=5
  • Evalute :

\sf \displaystyle \large \boldsymbol {}  10000\bigg(1+\frac{25}{1000} \bigg)^{\bigg5 }= 10000\cdot (1,025)^5 =11314.08213 \approx\boldsymbol {\sf 11314} \

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