To find the balance after 10 years of a savings account that pays 10% interest compounded yearly, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount of money in the account
P is the initial principal (the starting amount of money)
r is the annual interest rate written as a decimal
n is the number of times that interest is compounded per year
t is the number of years
Substituting the given values into the formula, we have:
A = 30000(1 + 0.10/1)^(1*10)
A = 30000(1 + 0.10)^(10)
A = 30000(1.10)^10
Using a calculator, we find:
A = 30000(2.59374)
A = $77,812.20
Therefore, the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly is $77,812.20.
Find the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly.(1 point)
1 answer
1 answer