Question

an account is opened with an initial deposit of $5,500 and earns 2.5% interest compounded annually. what will the account be worth in 10 years? round your answer to the nearest dollar.

Answer 1

Answer:7,040

Explanation:

Use the compound interest formula and substitute the correct values:

A=5,500

(1+

0.025

1

)

1(10)

. Simplify by using order of operations:

A=5,500(1.025

)

10

=5,500(1.280084544)≈7,040

.