The value of an investment t years after you make an initial deposit of $500 depends on the interest rate I. Find the value of each account.
a) t=10, I=3%
b) t=20, I=3%
c) t=5, I=6%
d) t=5, I=12%
Use the same formula for each. After t years with annually compounded interest at rate I, the princial value is
P = 500*(1 + I)^t
For the first one,
a) P = 500*(1.03)^10 = $671.96
You can use Google if you don't have a pocket calculator. Just do a search with the expression (1.03)^10 =
http://www.google.com/search?hl=en&ie=ISO-8859-1&q=%281.03%29%5E10+%3D&btnG=Google+Search&aq=f&oq=