Find the balance after ten years of thirty thousand dollars savings account that pays ten percent interest compounded yearly
To find the balance after ten years, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years the money is invested for
In this case:
P = $30,000
r = 10% = 0.10
n = 1 (compounded yearly)
t = 10 years
Plugging these values into the formula, we get:
A = 30000(1 + 0.10/1)^(1*10)
A = 30000(1 + 0.10)^10
A = 30000(1.10)^10
A = 30000(2.59374)
A = $77,812.20
Therefore, after ten years, the balance in the savings account will be $77,812.20.