Question

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?

Answer 1

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 :

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