Answer:
[tex]I=\$77,813.68[/tex]
Step-by-step explanation:
we know that
The compound interest formula is equal to
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
[tex]t=25\ years\\ P=\$30,000\\ r=5.25\%=5.25/100=0.0525\\n=1[/tex]
substitute in the formula above
[tex]A=30,000(1+\frac{0.0525}{1})^{25*1}[/tex]
[tex]A=30,000(1.0525)^{25}[/tex]
[tex]A=\$107,813.68[/tex]
Find out the total interest I
[tex]I=A-P[/tex]
so
[tex]I=\$107,813.68-\$30,000=\$77,813.68[/tex]
