Question

You are planning to invest $500 at 12% compounded annually. How much money would you have after 10 , 20 and 30 years?

Answer 1

10years: 500*(1+12%)^10=1553

20years: 500*(1+12%)^20=4823

30years: 500*(1+12%)^30=14980

Answer 2

$A=P(1+r)^t$

where A=final amount

P=principal

r=rate in decimal form

t=time in years

we are given that P=500, r=12%=0.12

we want to find A when t=10, 20, and 30

so

$A=500(1+0.12)^t$

$A=500(1.12)^t$

when t=10, $A=500(1.12)^{10}= 1552.92$

when t=20, $A=500(1.12)^{20}= 4823.15$

when t=30, $A=500(1.12)^{30}= 14980.96$