To calculate the balance after 10 years, we need to determine the total amount of interest earned over the first 5 years and then calculate the balance after another 5 years.
First, let's calculate the balance after 5 years:
Principal amount (initial deposit) = Birr 3000
Interest rate = 8% per month
Since the interest is compounded monthly, we need to convert the annual interest rate to a monthly rate:
Monthly interest rate = (1 + 8%)^(1/12) - 1 = 0.6414%
To calculate the total balance after 5 years, we use the compound interest formula:
Balance after 5 years = Principal amount * (1 + Monthly interest rate)^(Number of months)
Number of months = 5 years * 12 months/year = 60 months
Balance after 5 years = 3000 * (1 + 0.6414%)^(60)
Balance after 5 years = 3000 * (1.006414)^(60)
Balance after 5 years ≈ Birr 3830.097
After 5 years, the person leaves the account untouched for an additional 5 years. We can calculate the balance after another 5 years using the same formula, but this time the principal amount will be the balance after 5 years.
Principal amount = Birr 3830.097
Monthly interest rate = 0.6414%
Balance after 10 years = Principal amount * (1 + Monthly interest rate)^(Number of months)
Balance after 10 years ≈ 3830.097 * (1.006414)^(60)
Balance after 10 years ≈ Birr 4632.113
Therefore, the balance after 10 years would be approximately Birr 4632.113.
a person diposit birr 3000 at the end of the month for five yiars in to an account the pay 8% compound monthly after the five yiar the person liaves the account unteracted additional five yiars what is the balance offer 10 yiars
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