Question

An account earning 6.5% interest compounded annually for 10 years would have a balance of how much if the principal was $500?

how do i set this up

Answer 1

Take the amount you started with, $500, then multiply by the interest, 6.5%, then multiply that answer with the amount of years, 10.

Starting money x Interest x Time Collected

$500 x 6.5% x 10 = $325

$325 + $500 =$825