Question

Lynn invested $35,000 into an account earning 4% interest compounded annually she makes no other deposits into the account and does not withdraw any money what is the balance of Lynn’s account in five years.

Answer 1

Given: Lynn invested $35,000 into an account earning 4% interest compounded annually. No withdrawals or deposits were made.

Required: To determine the amount after 5 years.

Explanation: Here we have the following-

$\begin{gathered} P=\text{\ 35000} \\ r=\frac{4}{100}=0.04 \\ t=5\text{ years} \end{gathered}$

The formula for compound interest is-

$A=P(1+r)^t$

Substituting the values as-

$\begin{gathered} A=35000(1+0.04)^5 \\ A=\text{\ }42582.85 \end{gathered}$

Final Answer: The amount in Lynn's account after 5 years will be $42582.85