Mandy is saving up money to buy a car. Mandy puts 7,100.00 into an account which earns 1% interest, compounded annually. How much will she have in the account after 10 years?

Solution

Mandy is saving up money to buy a car. Mandy puts 7, 100.00 into an account which earns 1% interest, compounded annually. How much will she have in the account after 10 years?

Solution

Amount : 7842.82

Solution steps

Translate the problem into an equation:

A = 7100 (1 + \frac{0.01}{1})^{1 \cdot 10}

7100 (1 + \frac{0.01}{1})^{1 \cdot 10} = 7842.81709 \dots

Round to the nearest hundredth:

7842.82

Amount : 7842.82

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