You deposit $600 in an account earning 5% interest compounded annually. How much will you have in the account in 10 years?

Question

You deposit $600 in an account earning 5% interest compounded annually. How much will you have in the account in 10 years?

Answer 1

A(t)=P(1+r)^t

A = accrued amount = what you are solving for

P = principle investment = $600

r = rate of growth = 5% = 0.05

t = time = 10 years

 

A(10) = 600(1.05)¹⁰  use calculator to solve

A(10) ≈ 977.34

 

After 10 years, you will have about $977 in the bank.