Question

large-scale production.6. You deposit $1000 a year into an account. This account earns 8% interest compounded yearly.(20 points)a) how much will you have after 10 years?) How much total money did you put in the account.c) How much total interest did you earn?

Answer 1

Apply the compound interest formula:

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

Where:

A=amount after n years

P = initial principal = 1000

r= interes rate ind ecimal form = 8/100 = 0.08

n= number of times the interest is compounded annualy = 1

t= years

a. After 10 years:

A = 1000 (1 + 0.08)^10

A = 1000 (1.08)^10

A= $2,158.93

b. interest earnt

2,158.92 - 1000 = $1,158.93