We know that, Final Amount in Compound Interest is given by :
[tex]\bigstar\;\;\boxed{\mathsf{Amount = Principal\left(1 + \dfrac{Rate\;of\;interest}{100}\right)^{Number\;of\;Years}}}[/tex]
Given :
● Principal = $5000
● Rate of interest = 1.25
● Number of Years = 10
Substituting the values in the Formula, We get :
[tex]\implies \mathsf{Amount = 5000\left(1 + \dfrac{1.25}{100}\right)^{10}}[/tex]
[tex]\implies \mathsf{Amount = 5000\left(1 + \dfrac{0.25}{20}\right)^{10}}[/tex]
[tex]\implies \mathsf{Amount = 5000\left(1 + \dfrac{0.05}{4}\right)^{10}}[/tex]
[tex]\implies \mathsf{Amount = 5000\left(\dfrac{4.05}{4}\right)^{10}}[/tex]
[tex]\implies \mathsf{Amount = 5000\times (1.0125)^{10}}[/tex]
[tex]\implies \mathsf{Amount = 5661.354}[/tex]
Answer : $5661.354 money will be in the account 10 years later
Answer: $5,661.35
Step-by-step explanation:
I used the exponential growth formula to get my answer.
