Question

You have an account that starts at $2500 with an interest rate of 3.25% compound yearly. How much is in the account after 10 years? Round your answer to the nearest hundredth.

Answer 1

Answer:3,312.50

Step-by-step explanation:1. We assume, that the number 2500 is 100% - because it's the output value of the task.

2. We assume, that x is the value we are looking for.

3. If 2500 is 100%, so we can write it down as 2500=100%.

4. We know, that x is 3.25% of the output value, so we can write it down as x=3.25%.

5. Now we have two simple equations:

1) 2500=100%

2) x=3.25%

where left sides of both of them have the same units, and both right sides have the same units, so we can do something like that:

2500/x=100%/3.25%

6. Now we just have to solve the simple equation, and we will get the solution we are looking for.