1600 dollars is placed in an account with an annual interest rate of 5.25%. how much will be in the account…

Answer:

$5777.04$

Explanation:

Step1: Identify the compound - interest formula

$A = P(1 + r)^t$ where $A$ is the final amount, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the number of years.

Step2: Convert the interest rate to decimal

$r=5.25%=0.0525$, $P = 1600$, $t = 25$

Step3: Substitute the values into the formula

$A=1600\times(1 + 0.0525)^{25}$

Step4: Calculate $(1 + 0.0525)^{25}$

$(1 + 0.0525)^{25}\approx3.61065$

Step5: Calculate the final amount $A$

$A=1600\times3.61065 = 5777.04$