Zack puts 500.00 into an account to use for school expenses. The account earns 12% interest, compounded annually. How much will be in the account after 10 years?

Solution

Solution

Amount : 1552.92

Solution steps

Translate the problem into an equation:

A = 500 (1 + \frac{0.12}{1})^{1 \cdot 10}

500 (1 + \frac{0.12}{1})^{1 \cdot 10} = 1552.92410 \dots

Round to the nearest hundredth:

1552.92

Amount : 1552.92

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