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
Thank you!

- math -
**helper**, Monday, January 10, 2011 at 11:41pm
you're welcome!

## Answer this Question

## Related Questions

- math - sam invested $5000 in a GIC earning 8% compound interest per year, the ...
- Math - I hate word problems! Can anyone just change this Following word prob to...
- Math(word problems) - 4.Tracie invested $x at 7% and $y at 6%. Write algebraic ...
- College Algebra - A total of $14,000 is invested in 3 accounts earning 3%, 4%, ...
- math - you invested $4000 in two accounts paying 2% and 9% annual interest, ...
- Algebra( check my answers) - 1. Juan deposited $200 in a savings account earning...
- computer science - When $1000 is deposit at 5% simple interest, the amount grows...
- Last math problem help - Mr. Jarvis invested a total of 10,437 in two savings ...
- Math - O God I hate word problems! Is there any mechanical way to memorize word ...
- Math - An investment adviser invested $14,000 in two accounts. One investment ...

More Related Questions