Wednesday, June 20, 2012

Calculate Bank Account Interest

If an investor deposits $10,000 in a bank account that pays 10% interest annually, How much will be in your account after 5 years with calculating with interest earned?

Amount of Interest Earned Answer:

Initial  Deposit = $10,000
Interest Rate = 10% Years

Future Value of Account = $10,000 X (1 + 0.10)5 = $10,000 X (1.10)5
= $10,000 X (1.611) = $16,110

1 comment:

Teresa Hamilton said...

Thank you for sharing the post! Hope to see more posts from you. They are very helpful.
instagram

Popular Accounting Problems

The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.