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

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