Asked by cynthia
a person deposits five hundred dollars in a savings account that pays 5% annual interest that is compounded yearly. At the end of ten years, how much money will be in the savings account?
Answers
Answered by
Henry
P = Po(1+r)^n.
Po = $500. = Initial investment.
r = (5%/100%) = 0.05 = APR expressed as a decimal.
N = 1Comp./yr * 10yrs = 10 Compounding periods.
Plug the above values into the given Eq and get:
P = $814.45.
Po = $500. = Initial investment.
r = (5%/100%) = 0.05 = APR expressed as a decimal.
N = 1Comp./yr * 10yrs = 10 Compounding periods.
Plug the above values into the given Eq and get:
P = $814.45.
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.