33,000 was just deposited in an account paying 10% interest, the money will be there for 7 yrs. How much will be in the account in 7yrs
Thank you for using the Jiskha Homework Help Forum. Here is what you do:
33,000 X .10% = X
X times 7 =
now add that last figure to 33,000
What do you get? After you do the work, feel free to post your answer and we'll be glad to check it for you!
If the interest is figured on the balance at the end of each year, then you can do it this way.
$33,000 * 0.1 = $3300
At the end of the first year there'll be $36,300.
36,300 * 0.1 = $3630
End of 2nd year = $39,930
You can continue using this method for each year. Add the interest to the balance. Then figure the next year's interest on the current balance.
Assuming you are getting compound interest you would have
33,000(1.1)^7
= $64,307.66
To calculate the amount in the account after 7 years with a 10% interest rate, we can use the formula for compound interest:
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 = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested for
In this case, the principal (initial deposit) is $33,000, the interest rate is 10% (or 0.1 as a decimal), the money will be there for 7 years, and the interest is compounded annually (n = 1). Plugging these values into the formula:
A = 33,000(1 + 0.1/1)^(1*7)
A = 33,000(1 + 0.1)^7
A = 33,000(1.1)^7
Using a calculator or mathematical software, we can evaluate (1.1)^7, which equals approximately 1.9487171. Substituting this value back into the equation:
A = 33,000 * 1.9487171
A ≈ 64,214.19
Therefore, the approximate amount in the account after 7 years will be $64,214.19.