SOLUTION: if you had $36000 compound 5% per year then compounded it 35 years, what would it be?

Question 389775: if you had $36000 compound 5% per year then compounded it 35 years, what would it be?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
I'm assuming you're compounding once a year.

Recall that the compound interest formula is

where A is the return, P is the principal (ie amount invested), r is the interest rate (in decimal form), n is the compounding frequency (per year), and t is the time in years.

Start with the compound interest formula

Plug in , (the decimal equivalent of 5%), and .

Evaluate } to get

Add to to get

Multiply and to get .

Evaluate to get .

Multiply and to get .

Round to the nearest hundredth (ie to the nearest penny).

So after 36 years, you would have about $208,505.38 in the account.
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