Question

One thousand dollars is invested at 12% interest compounded annually. Determine how much investment is worth after 10 years.

Answer 1

@mathstudent55

Answer 2

@SolomonZelman

Answer 3

\(\Huge\color{magenta }{ \sf A=P(1+ \frac{r}{n})^{n\times t} }\)

A = amount of money accumulated after n years, including interest.
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
n = number of times the interest is compounded per year

\(\Huge\color{blue}{ \sf In~~~your~~case, }\)

\(\large\color{blue}{ \sf P = 1000 }\)
\(\large\color{blue}{ \sf r = 0.12 }\)
\(\large\color{blue}{ \sf t=10 }\)
\(\large\color{blue}{ \sf n=1 }\)

plug in the numbers into the formula (above in pink) and solve for A (the final amount of money after 10 years)

Answer 4

I get \[A=1000(1+\frac{ 0.12 }{ 1 })^{10}\]

Answer 5

and that equals $23,883.87?

Answer 6

https://www.google.com/#q=(1.12)%5E10

and then times 1000