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Karl opens a savings account with $2500. He deposits $1500 every year into the account that has a 0.75% interest rate, compounded monthly. If he doesn't withdraw any money, what will the account balance be in 10 years?

Respuesta :

Answer:

The amount from the compound interest is $2538. The total amount is $5038.

Step-by-step explanation:

Given that the account already had an amount of $2500. Now, Karl has started with $1500 at an interest rate of 0.75% compounded annually and for 10 years. The formula of C.I. is

[tex]A=P(1+\frac{R}{N})^{NT}[/tex]

Here P = $2500, R = 0.75%, N = 12 and T = 2.

A = 2500(1 + (0.0075 / 12))∧(12×2)

A = 2500(1.000625)∧24

A = 2500×1.0151

A = $2538

The amount at the end of 2 years is $2538.

The total amount would be 2538 + 2500 = $5038.

For more explanation, refer the following link:

https://brainly.com/question/18456266

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