use the compound interest formula to compute the balance in the following account after the stated period of…

use the compound interest formula to compute the balance in the following account after the stated period of time, assuming interest is compounded annually. $15,000 invested at an apr of 4.3% for 23 years. the balance in the account after 23 years is $ (round to the nearest cent as needed.)

use the compound interest formula to compute the balance in the following account after the stated period of time, assuming interest is compounded annually. $15,000 invested at an apr of 4.3% for 23 years. the balance in the account after 23 years is $ (round to the nearest cent as needed.)

Answer

Explanation:

Step1: Identify compound - interest formula

The compound - interest formula when compounded annually is $A = P(1 + r)^t$, 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 percentage to decimal

The annual percentage rate (APR) $r = 4.3%=0.043$, the principal amount $P=$15000$, and the number of years $t = 23$.

Step3: Substitute values into the formula

$A=15000\times(1 + 0.043)^{23}$. First, calculate $(1 + 0.043)^{23}$. Using a calculator, $(1.043)^{23}\approx2.67777$. Then, $A = 15000\times2.67777=40166.55$.

Answer:

$40166.55$