fin

posted by .

If you deposit $10,000 in a bank account that pays 10 percent interest annually, how much money will be in your account after 5 year?

  • fin -

    10,000 x .10 = 1000 interest a year

    5 years x 1000= $5000

    10,000 + 5000 = $15,000

    (If you didn't spend any of the 10,000 of course lol.

  • fin -

    Christina's answer doesn't take into account that you'll be paid interest on the interest.

    After the first year, you'll have $11,000 in your account -- $10,000 + 1,000.

    The second year:
    11,000 x .1 = 1,100
    11,000 + 1,100 = 12,100

    The third year:
    12,100 x .1 = 1,210
    12,100 + 1,210 = 13,310

    Fourth year:
    13,310 x .1 = 1,331
    13,310 + 1,331 = 14,641

    14,641 x .1 = 1,644.1
    14,641 + 1,644.1 = $16,285.10

    It looks like at the end of 5 years, you'll have $16,285.10 in your account. Check my figures.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math

    Please check my work, thank you If $7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years?
  2. pre algebra 6th grade

    Tara's bank account contains $250.00. She made only one deposit exactly one year ago. The bank account pays a simple interest rate of 8%. How much money did Tara deposit in the account one year ago?
  3. Finite Mathematics

    Jessica wants to accumulate $14,000 by the end of 5 yr in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over …
  4. Finance Homework

    If you deposit $2,000 in a bank account that pays 9% interest annually, how much would be in your account after 14 years?
  5. Finance

    Your grandparents deposit $1,000 each year on your birthday, starting the day you are born, in an account that pays 6% interest compounded annually. How much will you have in the account on your 30th birthday, just after your grandparents …
  6. math

    Samantha opened a savings account and deposited some money into the account. The account pays an annual simple interest rate of 5%. After 9 years, the interest earned on the account was $1,800. How much money did Samantha deposit in …
  7. differential equation

    If P(t) is the amount of dollars in a savings bank account that pays a yearly interest rate of r% compounded continuously ,then dP/dt=(r/100)(P) , t in years . Assume the interest is 5% annually ,P(0)=$1000 ,and no monies are withdrawn …
  8. pre algebra

    At the beginning of the year 2000, Bob put $100 in a savings account. The bank pays Bob 5% interest on his total savings at the end of each year including all interest added to the account. Assume the interest rate continues and Bob …
  9. algebra

    suppose you invest a certain amount of money n an account that pays 11% interest annually, and 4000 more than that in an account that pays 12% annually, How much money do you have in each account id the total interest for a year is …
  10. magh

    suppose you put money into teo different bank accounts. In account #1 you deposit $500 and you will be earning 6% interest compounded quarterly. in account #2 you deposit $600 and you will be earning 5% interest compounded annually. …

More Similar Questions