you deposit $3500 in an account that earns 2.5% annual interest. Find the balance after one year if the interest is compounded with the given frequency.
3587.5
what is
3500(1.025) ?
To find the balance after one year with compound interest, you can use the formula:
Balance = Principal * (1 + (Annual Interest Rate / Frequency))^(Frequency * Time)
In this case, the Principal is $3500, the Annual Interest Rate is 2.5%, and the Time is 1 year. The Frequency is not specified, so I will assume it's compounded annually.
Plugging in the values into the formula:
Balance = $3500 * (1 + (2.5% / 1))^(1 * 1)
Simplifying:
Balance = $3500 * (1 + 0.025)^1
To find the balance, calculate:
Balance = $3500 * (1.025)
Balance = $3587.50
Therefore, the balance after one year, with the interest compounded annually, is $3587.50.