Question

how much will be in my savings account in seven years after depositing 350 today if the bank pays 10% per year

Answer 1

Hello

To solve this question, we need to use the formula of compound interest

This is given as

`a=p(1+(r)/(n))^(nt)`

Let's define our variables

`\begin{gathered} a=\text{compounded interest} \\ p=\text{principal}=350 \\ n=\text{number of times compounded}=1 \\ t=\text{time}=7 \\ r=\text{rate}=10\text{ \%=0.1} \end{gathered}`

we can substitute into the equation

`\begin{gathered} a=350(1+(0.1)/(1))^(1*7) \\ a=350(1+0.1)^7 \\ a=350(1.1)^7 \\ a=350*1.95 \\ a=682.050\approx682.1 \end{gathered}`

From the calculation above, you would have $682.1 in your account at the end of 7 years