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fiasKO [112]
3 years ago
15

Monica deposited $26000 in an account that pays 4% interest compounded annually. How much money does she earn after 10 years?

Mathematics
1 answer:
enyata [817]3 years ago
5 0
Heres the formula for compound interest:
A=P(1+\frac{r}{n})^nt
A is the amount over 10 years
P is the initial deposit ($26,000)
r is the annual interest rate (4% or .04)
n is the number of times that interest is compounded annually (1)
t is the number of years the money is invested (10 yrs)
A=26000(1+\frac{.04}{1})^(1)(10)
A=26000(1.04)^10
A=26000(<span>1.48024428492)
A=$</span><span>38,486.3514079
(Simplified she would have $38,486.35)
</span>
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