Question

Janelle puts $1,000.00 into an account to use for school expenses. The account earns 14% interest, compounded annually. How much will be in the account after 10 years?

Answer 1

Answer: $2,400

Explanation:

Initial money saved by Jane = $1,000

If 14% interest is generated annually, the annual Interest amount to 14% of $1,000 = $140

After 10years, the accrued interest will be $140 × 10 which is $1,400

The total amount that will be in the account after 10years will be initial deposit + accrued interest

= $1,000 + $1,400

=$2,400