Question

Suppose you deposit $10,000 into an account earning 6% interest (compounded annually). How much will you have in 10 years?

Answer 1

Answer:

$17,908.48

Explanation:

Given that

Deposited amount = $10,000

Rate of interest = 6%

Time period = 10 years

So the computation of the future value is shown below;

As we know that

Future Value = Amount × ( 1 + rate of Interest ) ^ time

= $10,000 × ( 1 + 6%) ^10

= $10,000 × 1.790847697

= $17,908.48

We simply applied the above formula