Isabelle opened a savings account and deposited 1,000.00 as principal. The account earns 12% interest, compounded annually. What is the balance after 10 years?

Solution

Isabelle opened a savings account and deposited 1, 000.00 as principal. The account earns 12% interest, compounded annually. What is the balance after 10 years?

Solution

Amount : 3105.85

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.12}{1})^{1 \cdot 10}

1000 (1 + \frac{0.12}{1})^{1 \cdot 10} = 3105.84820 \dots

Round to the nearest hundredth:

3105.85

Amount : 3105.85

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