teonnirobinson teonnirobinson
  • 11-12-2019
  • Mathematics
contestada

A deposit of $1500 in an account pays 5 1/4% interest compounded annually. How much will be in the account after 15 years?

Respuesta :

saurabh23 saurabh23
  • 17-12-2019

Answer:

$3,231.63

Step-by-step explanation:

By the formula of compound interest ,

Amount finally = P[tex](1 + \frac{r}{n} )^{nt}[/tex]

Where P is the principal amount. Here , P = $1500

r = rate of interest = 5.25% = 0.0525

n = 1 (Since , Compounded annually)

t = time for which the amount is invested = 15 (years)

Thus, Putting values in the formula, we get

Amount finally = 1500[tex](1 + 0.0525)^{15}[/tex] = $3,231.63.

Thus, after 15 years , 3,231.63 dollars will be there in the bank.

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