The amount of money would be $6,851.2 in the account after 10 years.
Compound interest is defined as interest paid on the original principal and the interest earned on the interest of the principal.
A = P(1+r/100)ⁿ
Where:
A = the future value of the investment or loan
P = the principal investment or loan amount
r = the interest rate (decimal)
n = the number of compound periods
As per the question, data will be given as:
p = $5,000
r = 3.2%
t = 10 years
A = P(1+r/100)ⁿ
Substitute the values of p,r, and t in the formula,
A = 5,000 (1 + 3.2/100)¹⁰
A = 5,000 (1 + 0.032)¹⁰
A = 5,000 (1.032)¹⁰
A = 6,851.2052
Rounded to the nearest cent
A = 6,851.2
Therefore, the amount of money would be $6,851.2 in the account after 10 years.
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