) Let us assume that the interest was compounded annually. The formula for calculating compound interest is expressed as
A = P(1 + r/n)^nt
where
A is the amount after t years
P is the principal or initial amount invested
r is the interest rate
n is the number of compounding periods in a year
t is the number of years
From the information given,
P = 130
r = 4% = 4/100 = 0.04
n = 1 because it was compounded once in a year
t = 10
By substituting the values into the formula, we have
A = 130(1 + 0.04/1)^1 * 10
A = 130(1.04)^10
A = 192.43
Rounding to the nearest whole number, the amount after 10 years is $192
