Step-by-step explanation:
F=400(1+0.05/1)^1*t
After 1 year= $ 400.20
2= 400.40
3=$ 400.60
4= $ 400.80
5=$ 401.00
6= $ 401.20
7=$ 401.40
8= $ 401.60
9=$ 401.80
10= $ 402.00
The graph of the balance over every year is plotted. Here, we can see the increase in balance over the years.
"Compound interest is the addition of interest to the principal sum of a deposit, or in other words, interest on principal plus interest."
Here, the principal is (P) = $400
The interest rate(r) = 5% = 0.05
The time period is = n years
Therefore, after n years balance is = P(1 + r)ⁿ
After 1 year, balance is = $400(1 + 0.05)¹ = $420
After 2 years, balance is = $420(1 + 0.05)¹ = $441
After 3 years, balance is = $441(1 + 0.05)¹ = $463.05
After 4 years, balance is = $463.05(1 + 0.05)¹ = $486.20
After 5 years, balance is = $486.20(1 + 0.05)¹ = $510.51
Learn more about compound interest here: https://brainly.com/question/27698984
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