Question

Find the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly.(1 point)
Responses

$77,812.27
$77,812.27

$112,070.90
$112,070.90

$2,245,256.05
$2,245,256.05

$33,154.81

Answer 1

To find the balance of a savings account with compound interest, you can use the formula:

\[
A = P(1 + r)^n
\]

Where:
- \( A \) is the amount of money accumulated after n years, including interest.
- \( P \) is the principal amount (the initial money).
- \( r \) is the annual interest rate (decimal).
- \( n \) is the number of years the money is invested or borrowed.

In your case:
- \( P = 30,000 \)
- \( r = 0.10 \)
- \( n = 10 \)

Now plug these values into the formula:

\[
A = 30,000(1 + 0.10)^{10}
\]
\[
A = 30,000(1.10)^{10}
\]
\[
A = 30,000 \times 2.593742
\]
\[
A \approx 77,812.27
\]

So, the balance after 10 years will be approximately **$77,812.27**.