Answer:
$5,596.40
Step-by-step explanation:
Lets use the compound interest formula to solve:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 6% into a decimal:
6% -> [tex]\frac{6}{100}[/tex] -> 0.06
Next, plug the values into the equation:
[tex]A=3,125(1+\frac{0.06}{1})^{1(10)}[/tex]
[tex]A=5,596.40[/tex]
After 10 years, Morticia will have $5,596.40. We know this because by using the compound interest formula and plugging in all the values, you will get the correct answer.
