To calculate the account balance after 10 years with 3.2% annual interest, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the account
P = the principal amount (initial deposit) = $5000
r = the annual interest rate = 3.2% or 0.032
n = the number of times interest is compounded per year = 1 (since it is not specified)
t = the number of years = 10
Plugging in the values:
A = $5000(1 + 0.032/1)^(1*10)
A = $5000(1.032)^10
A = $5000(1.432856)
A = $7164.28
Therefore, the account balance after 10 years will be approximately $7164.28.
$5000 is deposited in an account that earns 3.2% annual interest. If no funds are added or withdrawn from the account, what will be the account balance in 10 years?
Round to the nearest cent.
1 answer