To find the balance after 10 years of a savings account, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount or balance
P = the principal amount or initial deposit
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years
Given that the principal amount is $30,000, the interest rate is 10% (0.10 as a decimal), and the interest is compounded yearly (n = 1), we can substitute these values into the formula:
A = $30,000(1 + 0.10/1)^(1*10)
= $30,000(1 + 0.10)^10
= $30,000(1.10)^10
= $30,000(2.5937)
= $77,811
Therefore, the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly is $77,811.
Find the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly
1 answer
1 answer