Find the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly.(1 point)
Responses
$77,812.27
$77,812.27
$33,154.81
$33,154.81
$2,245,256.05
$2,245,256.05
$112,070.90
To find the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly, you can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final balance
P = the initial principal (in this case, $30,000)
r = the annual interest rate (in decimal form, so 10% becomes 0.10)
n = the number of times interest is compounded per year (since it's compounded yearly, n = 1)
t = the number of years (in this case, 10 years)
Plugging in the values, we get:
A = 30000(1 + 0.10/1)^(1*10)
A = 30000(1 + 0.10)^10
A = 30000(1.10)^10
A ≈ 30000(2.5937)
A ≈ $77,812.27
Therefore, the correct answer is $77,812.27.