Answer:
$44,771.19
Step-by-step explanation:
We will use the compound interest formula to solve this:
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, lets change 6% into a decimal:
6% -> [tex]\frac{6}{100}[/tex] -> 0.06
Now, plug the values into the equation:
[tex]A=25,000(1+\frac{0.06}{1})^{1(10)}[/tex]
[tex]A=44,771.19[/tex]
The balance after 10 years will be $44,771.19
