Step-by-step explanation:
In the above question we have been given ,
P = $ 25,000 ( initial deposit )
r = 6% ( rate of interest )
n = 1
t = 5 years ( time period )
Compound Interest Formula -
[tex]A = P( 1 + \frac{r}{n})^n^t[/tex]
Now putting the appropriate values -
[tex]A = 25000(1+ \frac{6}{100} )^5= 25000(\frac{106}{100})^5\\ \\= 25000 X 1.34\\\\A = 33,500[/tex]
After 5 years the balance will be $33,500
The amount in the account after five years would be $33,500
Explanation:
Principal. P = $25,000
Rate of interest, r = 6%
Time, t = 5 years
Balance = ?
We know,
[tex]A = P( 1 + \frac{r}{n})^n^t[/tex]
Since the interest is compounded annually, n = 1
Substituting the value we get,
[tex]A = 25000(1+ \frac{6}{100} )^5\\\\A = 25000(\frac{106}{100})^5\\ \\A = 25000 X 1.34\\\\\\A = 33,500[/tex]
Therefore, the amount in the account after five years would be $33,500
