Karen opens a savings account with $1500. She deposits $100 every month into the account that has a 0.85% interest rate, compounded annually. If she doesn’t withdraw any money, what will the account balance be in 10 years?

I want you to check your typing.

An interest rate of .85% seems hardly worth it, you are not even getting 1%

Do you want the amount at the end of the 10 years ?

I checked my typing and its correct, that's how it is and yes.

To calculate the future value of Karen's savings account after 10 years, we'll use the formula for compound interest:

Future Value = Principal * (1 + (Interest Rate / Compounding Frequency))^(Compounding Frequency * Time)

In this case, the initial principal is $1500, the interest rate is 0.85%, and the compounding is annual.

Let's break down the calculation step-by-step:

Step 1: Convert the interest rate from a percentage to a decimal:
Interest Rate = 0.85% = 0.0085 (decimal)

Step 2: Determine the number of times interest is compounded per year:
Since the interest is compounded annually, Compounding Frequency = 1

Step 3: Calculate the future value:
Future Value = $1500 * (1 + (0.0085 / 1))^(1 * 10)
≈ $1500 * (1.0085)^(10)
≈ $1500 * 1.089308674
≈ $1633.96

Therefore, the account balance will be approximately $1633.96 after 10 years if Karen doesn't withdraw any money.

To calculate Karen's account balance in 10 years, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the final account balance
P = the initial principal (the amount Karen opens the account with) = $1500
r = the interest rate per period, expressed as a decimal = 0.85% = 0.0085
n = the number of times the interest is compounded per year = 1 (since the interest is compounded annually)
t = the number of years the money is invested for = 10

By substituting the values into the formula, we can calculate the final account balance:

A = 1500(1 + 0.0085/1)^(1*10)

First, we need to calculate (1 + 0.0085/1)^(1*10):

(1 + 0.0085/1)^(1*10) = 1.0085^10

Using a calculator or manual calculations, we find that 1.0085^10 ≈ 1.08647.

Now, we can substitute this value back into the main formula:

A = 1500 * 1.08647

Calculating this, we find that Karen's account balance after 10 years will be approximately $1,629.71.