To calculate the future value of an investment compounded annually, 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 amount of money).
- \( r \) is the annual interest rate (decimal).
- \( n \) is the number of years the money is invested or borrowed.
For this scenario:
- \( P = 10000 \)
- \( r = 11% = 0.11 \)
- \( n = 10 \)
Now, plug these values into the formula:
\[ A = 10000(1 + 0.11)^{10} \] \[ A = 10000(1.11)^{10} \]
Calculating \( (1.11)^{10} \):
\[ (1.11)^{10} \approx 2.83942 \]
Now, multiply by 10,000:
\[ A \approx 10000 \times 2.83942 \approx 28394.21 \]
So, after 10 years, the amount in the account is approximately $28,394.21.
Therefore, the correct answer is:
• $28,394.21