Question

If you plan to deposit $1500 into the bank at the end of each year for the next 10 years, earning 5% interest per year, how much will be in the account at the end?

Answer 1

The amount of money in the account at the end of 10 years will be approximately $2040.08.

Step-by-step explanation:

To calculate the amount of money in the account at the end of 10 years, we can use the formula for compound interest:
Future Value = P * (1 + r)^n
where P is the principal amount (the initial deposit), r is the interest rate as a decimal, and n is the number of compounding periods (in this case, the number of years).

In this question, the principal amount is $1500, the interest rate is 5% or 0.05, and the number of years is 10. Plugging these values into the formula, we get:
Future Value = $1500 * (1 + 0.05)^10

Using a calculator, we can compute the future value to be approximately $2040.08. Therefore, at the end of 10 years, there will be approximately $2040.08 in the account.