Hei has $1500 in a retirement account earning 5% interest compounded annually. Each year after the first, she makes additional deposits of $1500. After five years, what was her account. balance if she did not make any withdrawals?

Question

Mathematics

Kyson Burns

11 November, 01:59

Hei has $1500 in a retirement account earning 5% interest compounded annually. Each year after the first, she makes additional deposits of $1500. After five years, what was her account. balance if she did not make any withdrawals?

+1

Answers (1)

Know the Answer?

Tyler Mosley · Answer 1

1500 (1.05) = 1575 - - > after one year

1575 + 1500 = 3075

3075 (1.05) = 3228.75 - - > after two years

3228.75 + 1500 = 4728.75

4728.75 (1.05) = 4965.1875 - - > after three years

4965.1875 + 1500 = 6465.1875

6465.1875 (1.05) = 6788.44688 - - > after four years

6788.44688 + 1500 = 8288.44688

8288.44688 (1.05) = 8702.86922 - - > after five years = $8702.87