Asked by Taylor

Sam invested $5000 in a GIC earning 8% compound interest per year. The interest gets added to the amount invested, so the next year Sam gets interest on the interest already earned as well as on the original amount. How much will Sam's investment be worth at the end of 10 years?

Please answer ASAP, thanks.
Answered by helper
how is the interest compounded?
ie, daily, quarterly, semiannually, annually, or ?
Answered by Taylor
I'm not sure, the question doesn't say anything about that specifically, but I'm guessing it's annually?
Answered by helper
A(t) = P (1 + r/n)^nt
A(10) = 5000 ( 1 + .08/1)^1*10
A(10) = 5000 ( 1.08)^10
A(10) = 5000 ( 2.15892 )
A(10) = 10,794.60
5000 + 10794.60 = 15794.60

I'm not a tutor, but I've done this type
problem here before
Answered by Taylor
Thank you!
Answered by helper
you're welcome!
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