$1000 is invested at the beginning of each year for 10 years. The rate of interest is fixed at 7.5% annum. Interest is compound annually. Calculate, giving your answers to the nearest dollar. How much is the first $1000 worth at the end of the ten years?

Question

$1000 is invested at the beginning of each year for 10 years.  The rate of interest is fixed at 7.5% annum. Interest is compound annually. Calculate, giving your answers to the nearest dollar. How much is the first $1000 worth at the end of the ten years?

callisto · Answer

Amount = P(1+r)^n, where P is the principle, r is the interest rate, n is the number of period
now, P = 1000 , r =7.5% , n=10
So, amount = 1000 (1+7.5%)^10
Can you solve it from here?

4meisu · Answer

Yep, thank you :)