Question

You deposit $400 in an account earning 6% interest compounded annually. How much will you have in the account in 10 years?

Answer 1

$716.34

Explanation:

The Simple formula for compound interest:

`P(1+(r)/(100) )^t`

P = Principle Amount

r = Rate

t = Time

Substituting the numbers into the formula:

`400(1+(6)/(100) )^(10)`

= 716.339078617

≈ $716.34 (Rounded off to two decimal places)