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Kristen invested $14763 in an account at an annual interest rate of 3.4%. She made no deposits or withdrawals on the account for 5 years. The interest was compounded annually. Find the balance in the account, to the nearest whole number, at the end of 5 years.

Respuesta :

Wallameg000

Answer:

$17,449.27

Step-by-step explanation:

Interest is the amount of money earned on an account.

Compound Interest

Interest rate is the percentage at which the account earns interest. For this account, the interest rate is 3.4%. Compound interest is when the amount of interest made increases over time. In the question, we are told that the interest on the account is compounded once every year. This means that the amount of interest earned increases once a year. We can use a compound interest formula to solve for the balance in the account in 5 years.

Solving Compound Interest

The compound interest formula is:

  • [tex]\displaystyle A = P(1+\frac{r}{n})^{n*t}[/tex]

In this formula, P is the principal (initial investment), r is the interest rate in decimal form, n is the number of times compounded per year, and t is the time in years. Now, we can plug in the information we know and solve for the final balance.

  • A = 14763( 1 + 0.034)⁵
  • A = 17,449.27

This means that after 5 years, the balance in the account will be $17,449.27.

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