Question

A deposit of $10,000 now at a nominal interest rate of 10% per year will accumulate in 20 years to an amount equal to:

a. $51,900
b. $54,600
c. $61,500
d. $67,280

Answer 1

Use the formula: Amount
P = 10,000
r = 10%
t = 20 years
As the interest is compounded annually, thus we have taken the t=20.

Therefore the correct answer is D. $67,280