To find the balance after ten years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years the money is invested for
In this case:
P = $30,000
r = 10% = 0.10
n = 1 (compounded yearly)
t = 10 years
Plugging these values into the formula, we get:
A = 30000(1 + 0.10/1)^(1*10)
A = 30000(1 + 0.10)^10
A = 30000(1.10)^10
A = 30000(2.59374)
A = $77,812.20
Therefore, after ten years, the balance in the savings account will be $77,812.20.
Find the balance after ten years of thirty thousand dollars savings account that pays ten percent interest compounded yearly
1 answer