Mason puts 1,000.00 into an account to use for school expenses. The account earns 13% interest, compounded annually. How much will be in the account after 10 years?

Solution

Mason puts 1, 000.00 into an account to use for school expenses. The account earns 13% interest, compounded annually. How much will be in the account after 10 years?

Solution

Amount : 3394.57

Solution steps

Translate the problem into an equation:

A = 1000 (1 + \frac{0.13}{1})^{1 \cdot 10}

1000 (1 + \frac{0.13}{1})^{1 \cdot 10} = 3394.56738 \dots

Round to the nearest hundredth:

3394.57

Amount : 3394.57

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