Question

Find the balance of a savings account at the end of years if the interest earned each year is . %. The principal is $. what is it please?

Answer 1

You can use the time value of money formula.

FV = PV(1 + r)^n

FV = future value

PV = present value

r = interest rate = percentage/100

n = number of compounding periods

FV = 500*(1 + 0.075)^10 = $ 1030.52