Find the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly. (1 point)
To find the balance after 10 years, we'll use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the balance after time t
P = the principal 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
Plugging in the given values:
A = 30000(1 + 0.10/1)^(1*10)
A = 30000(1 + 0.10)^(10)
A = 30000(1.10)^(10)
A = 30000 * 1.141
A = $34,231.53
The balance after 10 years would be $34,231.53.