use the compound interest formula to compute the balance in the following account after the stated period of time assuming interest is compounded annually. 15000 dollars invested at an APR of 3.4% for 23 years. what is the balance in the account after 23 years

Solution

u se t h e co m p o u n d in t eres t f or m u l a t o co m p u t e t h e ba l an ce in t h e f o ll o w in g a cco u n t a f t er t h e s t a t e d p er i o d o f t im e a ss u min g in t eres t i s co m p o u n d e d ann u a ll y . 15000 d o ll a rs in v es t e d a t an A PR o f 3.4% f or 23 ye a rs . w ha t i s t h e ba l an ce in t h e a cco u n t a f t er 23 ye a rs

Amount : 32364.11

Solution steps

Translate the problem into an equation:

A = 15000 (1 + \frac{0.034}{1})^{1 \cdot 23}

15000 (1 + \frac{0.034}{1})^{1 \cdot 23} = 32364.10865 \dots

Round to the nearest hundredth:

32364.11

Amount : 32364.11