Question

Find the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly.(1 point)

Answer 1

[AI-generated answer — Bot GPT 3.5]

To find the balance after 10 years of a $30,000 savings account that pays 10% interest compounded yearly, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the final balance after t years
P = the principal (initial amount)
r = the annual interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years

In this case, the principal (P) is $30,000, the annual interest rate (r) is 10% (or 0.10 in decimal form), the number of times interest is compounded per year (n) is 1 (compounded yearly), and the number of years (t) is 10.

Substituting these values into the formula:

A = 30000(1 + 0.10/1)^(1*10)
A = 30000(1 + 0.10)^10
A = 30000(1.10)^10
A = 30000(2.59374)

Calculating this expression:

A ≈ $77,812.20

Therefore, the balance after 10 years in a $30,000 savings account that pays 10% interest compounded yearly is approximately $77,812.20.