Question

Questions 1-5. Bryan invests $500 in an account earning 4% interest that compounds annually. If he makes no additional deposits or withdrawals, how much will be in the account:1. After 10 years? (round to the hundredths place)

Answer 1

We know that Bryan has invested $500 into an account with a 4% annual compound interest. He does not make any deposits or withdrawals after the initial investment.

In this case, we can use the following formula to determine how much money there will be in his account:

`A=P(1+r)^t,`

where P is the initial investment, r is the interest rate witten in decimal form and t is the amount of time we are applying the interest over.

So, using the data we have, we get:

`A=500(1+0.04)^(10)=500(1.04)^(10)\approx740.12.`

So, after 10 years Bryan will have $740.12.