(Numeric Entry) Suppose you put $1000 into a money market mutual fund that paid 10% a year, where interest was compounded annual

Question

Orlov [11]

3 years ago

5

(Numeric Entry) Suppose you put $1000 into a money market mutual fund that paid 10% a year, where interest was compounded annual

ly. How much money would you have at the end of the year?

Business

1 answer:

kkurt [141] · Answer 1 · 2021-12-14T08:16:40+03:00

Answer:

$1100

Explanation:

Compound Interest is a multiplying effect interest , in which interest for each successive period is calculated on (Principal + Interest) of each preceeding period .

Formula : A = P(1+r/n) power 'nt .

r = Interest rate , t = time , n = compound in time 't' , P = Principal

A = 1000 (1+10/1) power'(1X1) = 1000 X 11 power 1' = 1000 X 11 = 1100