Posted by Taylor on Monday, January 10, 2011 at 9:37pm.
Sam invested $5000 in a GIC earning 8% compound interest per year. The interest gets added to the amount invested, so the next year Sam gets interest on the interest already earned as well as on the original amount. How much will Sam's investment be worth at the end of 10 years?
Please answer ASAP, thanks.
- math - helper, Monday, January 10, 2011 at 10:08pm
how is the interest compounded?
ie, daily, quarterly, semiannually, annually, or ?
- math - Taylor, Monday, January 10, 2011 at 10:15pm
I'm not sure, the question doesn't say anything about that specifically, but I'm guessing it's annually?
- math - helper, Monday, January 10, 2011 at 10:59pm
A(t) = P (1 + r/n)^nt
A(10) = 5000 ( 1 + .08/1)^1*10
A(10) = 5000 ( 1.08)^10
A(10) = 5000 ( 2.15892 )
A(10) = 10,794.60
5000 + 10794.60 = 15794.60
I'm not a tutor, but I've done this type
problem here before
- math - Taylor, Monday, January 10, 2011 at 11:29pm
- math - helper, Monday, January 10, 2011 at 11:41pm
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