Question

Suppose that $60,000 is invested at 5% interest. Find the amount of money in the account after 10 years if the interest is compounded annually. If interest is compounded annually, what is the amount of money after t=10 years?

Answer 1

Okay, here we have this:

Considering the provided information we are going to replace in the following formula:

$\begin{gathered} A=P\mleft(1+\frac{r}{n}\mright)^{nt} \\ A=60000(1+0.05)^{1\cdot10} \\ A=60000(1.05)^{10} \\ A\approx 97,733.68 \end{gathered}$

Finally we obtain that the amount of money after 10 years will be $97,733.68