00:01
We now determine the amount in the account after 10 years when an amount of $30 ,000 is deposited at an interest rate of 3 .5 % and the compounding interval is annually.
00:14
So let's see how to determine the amount in the account.
00:17
For this, we replace the compound interest amount formula that is given by a equals p times of 1 plus r by n raised to the power of end.
00:31
And this a represents the amount in the account after t years.
00:37
This p represents the amount invested or deposited.
00:46
This r is the interest rate and this should be in decimals.
00:59
N represents the number of times compounded or otherwise it is the compounding interval.
01:15
And t represents the time in units of time.
01:19
Here it is in years so let's determine these values from the given information we see that amount deposited is $30 ,000 so this one is p and r is a rate of interest that is given in terms of percentage so we should convert this to decimal that is 3 .5 percent this equals 3 .5 divided by 100 and so this equals 0 .035 so r equals 0 .035 and then n is the compounding interval which is annually which means n equals 1 here and t represents the time in years so it is 10 here so let's plug in all this values into this amount formula to determine the amount in the account so therefore we write a equals plug in p.
02:22
P is 30 ,000 times 1 plus r is 0 .035.
02:31
This is divided by n, n equal to 1...