Hei has $1800 in a retirement account earning 3% interest compounded annually . Each year after the first she makes an additional deposit of $1800. After 5 years what was her account balance if she did not make any withdrawals? Round each year's interest to the nearest cent if necessary

$11643.14

Step-by-step explanation:

Hei started with $1800 in her account, which compounded annually at an interest rate of 3%. This means that her principal is $1800

She makes a yearly deposit of $1800 over 5 years

We calculated her accrued balance over the 5 years, we use the formula: I = P × R / 100 for each year.

Where P= principal, R= rate, I= Interest

Year 1 = 1800 × 3 / 100 = 54

Interest= $54

New principal will be 1800 + 54 + 1800 (annual additional deposit) = $3654

Year 2= 3654 × 3 / 100 = 109.62

Interest= $109.62

New principal will be 3654 + 109.62 + 1800 (annual additional deposit) = $5563.62

Year 3= 5563.62 × 3 / 100 = 166.91

Interest= $166.91

New principal will be 5563.62 + 166.91 + 1800 (annual additional deposit) = $7530.53

Year 4= 7530.53 × 3 / 100 = 225.92

Interest= $225.92

New principal will be 7530.53 + 225.92 + 1800 (annual additional deposit) = $9556.45

Year 5= 9556.45 × 3 / 100 = 286.69

Interest= $286.69

Total amount in her account will be 9556.45 + 286.69 + 1800 (annual additional deposit) = $11643.14

If Hei does not make any withdrawal within the 5 years, her account balance will be $11643.14 i.e. an accumulation of $10800 total deposit and $843.14 total interest.