Question

Why does the value of money in What would be the value of $100 after 10 years if you earn 11 percent interest per yeara savings account increase over time

Answer 1

210

Explanation:

I=(p×t×r)÷100

I=(100×10×11)÷100

I=110

Now,

Amount=P+I

=100+110

=210

Hence,total amount is $210.

Answer 2

Explanation:

Assuming the interest was compounded, we would apply, we would apply the formula for determining compound interest which is expressed as

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

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = $100

r = 11% = 11/100 = 0.11

n = 1 because it was compounded once in a year.

t = 10 years

Therefore,.

A = 100(1 + 0.11/1)^1 × 10

A = 100(1.11)^10

A = $284