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You deposit $200 in an account earning 2% interest compounded annually how much will you have any account in 10 years

1 Answer

2 votes

Answer:

$243.80

Explanation:

You basically just multiply this by 1.02, then multiply the answer of that by 1.02, etc, until you did it 10 times in total. There is also the formula

P (1 + r/n)^(nt)

Where

A = final amount

P = initial principal balance

r = interest rate

n = number of times interest applied per time period

t = number of time periods elapsed

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