Question

Bryan invests $500 in an account earning 3.5% interest that compounds annually. If he makes no additional deposits or withdraws, how much will be in the account:
After 10 years?


After 15 years?


After 20 years?

Answer 1

Answer:

$705.30,  $837.67,  $994.89 Respectively

Step-by-step explanation:

Given

P= $500

r= 3.5%= 3.5/100= 0.035

Applying the compound interest formula we have

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

where

A = final amount

P = initial principal balance

r = interest rate

t = number of time periods elapsed

1. for t= 10 years

$A= 500(1+0.035)^1^0\\\ A= 500(1.035)^1^0\\\\ A= 500*1.410598\\\ A=705.299$

A= $705.30

2. for t= 15 years

$A= 500(1+0.035)^1^5\\\ A= 500(1.035)^15\\\\ A= 500*1.67534\\\ A=837.67$

A= $837.67

3. for t= 20 years

$A= 500(1+0.035)^2^0\\\ A= 500(1.035)^2^0\\\\ A= 500*1.98978\\\ A=994.89$

A= $994.89