5. Melanie put $5000 in a savings account that pays 1.25% interest compounded yearly. How much money will be in the account 10 years later if she makes no more deposits or withdrawals?

$5661 will be in the account 10 years later

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 5000

r = 1.25% = 1.25/100 = 0.0125

n = 1 because it was compounded once in a year.

t = 10 years

Therefore,

A = 5000(1 + 0.0125/1)^1 × 10

A = 5000(1.0125)^10

A = 5000(1.0125)^10

A = $5661

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step-by-step explanation:

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step-by-step explanation:

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