Question 895973
We'll use the formula


{{{A = P*(1+r/n)^(n*t)}}}


where


P = 25000 (the principal or initial balance)
r = 0.05 (interest rate as a decimal)
n = 1 (we're compounding 1 time per year)
t = 2 (for 2 years)


{{{A = P*(1+r/n)^(n*t)}}}


{{{A = 25000*(1+0.05/1)^(1*2)}}} Plug in the given values (shown above)


{{{A = 25000*(1+0.05)^(1*2)}}}


{{{A = 25000*(1.05)^(1*2)}}}


{{{A = 25000*(1.05)^(2)}}}


{{{A = 25000*(1.1025)}}}


{{{A = 27562.50}}}



The balance of the account in two years is <font color="red">$27,562.50</font>