document.write( "Question 895973: A business invests $25,000 in an account that earns 5% interest compounded annually. What is the balance in the account after 2 years? \n" ); document.write( "
Algebra.Com's Answer #543126 by jim_thompson5910(35256)\"\" \"About 
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We'll use the formula\r
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\n" ); document.write( "\n" ); document.write( "\"A+=+P%2A%281%2Br%2Fn%29%5E%28n%2At%29\"\r
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\n" ); document.write( "\n" ); document.write( "where\r
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\n" ); document.write( "\n" ); document.write( "P = 25000 (the principal or initial balance)
\n" ); document.write( "r = 0.05 (interest rate as a decimal)
\n" ); document.write( "n = 1 (we're compounding 1 time per year)
\n" ); document.write( "t = 2 (for 2 years)\r
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\n" ); document.write( "\n" ); document.write( "\"A+=+P%2A%281%2Br%2Fn%29%5E%28n%2At%29\"\r
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\n" ); document.write( "\n" ); document.write( "\"A+=+25000%2A%281%2B0.05%2F1%29%5E%281%2A2%29\" Plug in the given values (shown above)\r
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\n" ); document.write( "\n" ); document.write( "\"A+=+25000%2A%281%2B0.05%29%5E%281%2A2%29\"\r
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\n" ); document.write( "\n" ); document.write( "\"A+=+25000%2A%281.05%29%5E%281%2A2%29\"\r
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\n" ); document.write( "\n" ); document.write( "\"A+=+25000%2A%281.05%29%5E%282%29\"\r
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\n" ); document.write( "\n" ); document.write( "\"A+=+25000%2A%281.1025%29\"\r
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\n" ); document.write( "\n" ); document.write( "\"A+=+27562.50\"\r
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\n" ); document.write( "\n" ); document.write( "The balance of the account in two years is $27,562.50
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