Question

Benny invests $960 yearly into an account that pays 8% interest, compounded

annually. Determine the amount in Benny's account after 10 years.

Answer 1

$2,072.56

Explanation:

Compound interest formula is expressed as;

A = P(1+r) ^ n

A = 960(1+0.08) ^ 10

A = 960(1.08)^10

A = 960(2.1589)

A = 2,072.56

Hence the amount in Benny's account after 10 years is $2,072.56