Question

You deposit $1000 each year into an account earning 8% compounded annually.How much will you have in the account in 10 years?

Answer 1

Given,

Annual deposit = $1000

Rate = 8% compounded annually

Time(n) = 10 year

Amount = ?

As we know the formula ,

Amount = P(1+r/100)ⁿ

Amount = 1000(1+8/100)¹⁰

Amount = 1000(1+0.08)¹⁰

Amount =1000(1.08)¹⁰

Amount = 1000 × 2.15892

Amount = $2158.92

Hence, amount in 10year will be $2158.92

Answer 2

If you deposit $1000 each year into an account earning 8% compounded annually, you will have $13,366.37 in the account in 10 years. Using the compound interest formula A = P(1 + r/n)^(nt), where A is the amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the number of years, we can calculate the amount. Plugging in the values, we get A = 1000(1 + 0.08/1)^(1*10) = $2,159.15. Therefore, the total amount after 10 years will be $13,366.37, which is the sum of the principal and the interest earned.