Question

You deposit $400 in an account earning 6% interest compounded annually. How much will you have in the account in 10 years?

Answer 1

Answer:

$716.34

Step-by-step explanation:

The Simple formula for compound interest:

$P(1+\frac{r}{100} )^t$

P = Principle Amount

r = Rate

t = Time

Substituting the numbers into the formula:

$400(1+\frac{6}{100} )^{10}$

= 716.339078617

≈ $716.34 (Rounded off to two decimal places)