Question

You have $100 to invest. If you put the money into an account earning 5% interest compoundedannually, how much money will you have in 10 years

Answer 1

$162.89

Step-by-step explanation:

Given that :

Principal (p) = $100

Interest rate (r) = 5% = 0.05 (compounded annually)

Time or period = 10 years

Compound interest formula :

A = P(1 + r/n)^nt

A = final amount ; n = number of compounding times per period

A = 100(1 + 0.05/1)^1*10

A = 100(1 + 0.05)^10

A = 100(1.05)^10

A = 100(1.62889462677744140625)

A = 162.8894626

A = $162.89