Final answer:
The final amount after 1 year would be $55,000.00 based on an annual interest rate of 10% compounded annually.
Step-by-step explanation:
To find out how many compounded annually in $50,000.00 invested at 10% interest in 1 year, you can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount
- P is the principal amount (initial investment)
- r is the annual interest rate (in decimal form)
- n is the number of times interest is compounded per year
- t is the number of years
In this case, P = $50,000.00, r = 0.10, n = 1 (compounded annually), and t = 1 year. Plugging in these values, we get:
A = $50,000.00(1 + 0.10/1)^(1*1)
A = $50,000.00(1 + 0.10)^1
A = $50,000.00(1.10)
A = $55,000.00
So, the final amount after 1 year would be $55,000.00 based on an annual interest rate of 10% compounded annually.