Question

How much compound interest will $50,000 earn in 10 years at 3.4% APR compounded yearly, providing no deposits or withdrawals are made?

Answer 1

3.4% APR means that each year, the amount of money increases by 0.034 of the current amount of money. In other words, the amount of money is multiplied by 1.034 each year.
To calculate the amount of money at the end of 10 years, we would take the initial amount of money (50000) and multiply it by the interest rate (1.034) 10 times (the number of years).
In short, 50000 * (1.034^10) = what?