lolitanymph
lolitanymph lolitanymph
  • 14-11-2018
  • Mathematics
contestada

You are planning to invest $500 at 12% compounded annually. How much money would you have after 10 , 20 and 30 years?

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apologiabiology
apologiabiology apologiabiology
  • 14-11-2018

[tex]A=P(1+r)^t[/tex]

where A=final amount

P=principal

r=rate in decimal form

t=time in years


we are given that P=500, r=12%=0.12

we want to find A when t=10, 20, and 30


so

[tex]A=500(1+0.12)^t[/tex]

[tex]A=500(1.12)^t[/tex]

when t=10, [tex]A=500(1.12)^{10}=$1552.92[/tex]

when t=20, [tex]A=500(1.12)^{20}=$4823.15[/tex]

when t=30, [tex]A=500(1.12)^{30}=$14980.96[/tex]

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wghitustl
wghitustl wghitustl
  • 14-11-2018

10years: 500*(1+12%)^10=1553

20years: 500*(1+12%)^20=4823

30years: 500*(1+12%)^30=14980


Answer Link

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