Question

You deposit $10,000 in a bank for college. The bank will give you 2.4% interest continuously. How much is in your account after 7 years? ( round to the nearest cent (2 decimal places) )

Answer 1

$12089.26

Explanation:

10,000

1.024 (100% of 10,000 + 2.4%)

1.024 * 10,000 = 10240 (1 year)

1.024 * 10240 = 10485.76 (2 years)

1.024 * 10737.42 = 10995.12 (3 years)

1.024 * 10995.12 = 11259 (4 years)

1.024 * 11259 = 11529.22 (5 years)

1.024 * 11529.22 = 11805.92 (6 years)

1.024 * 11805.92 = 12089.26 (7 years)