Answer:
The amount in account after 5 years at 2.75 APR is $ 8589.525
Step-by-step explanation:
Given as :
The amount save in the account per months = $ 25
The time period of saving = 25 years = 25 × 12 = 300 months
So, Amount saved in account for 300 months = $ 25 × 300 = $ 7500
The annual percentage rate = 2.75 %
From Compounded method
Amount = Principal × [tex](1+\frac{\testrm Rate}{100})^{\textrm Time}[/tex]
So, Amount = $ 7500 × [tex](1+\frac{\testrm 2.75}{100})^{\textrm 5}[/tex]
Or, Amount = $ 7500 × [tex](1.0275)^{5}[/tex]
or, Amount = $ 7500 × 1.14527
∴ Amount = $ 8589.525
Hence The amount in account after 5 years at 2.75 APR is $ 8589.525 Answer
