What is $85.5 compounded annually for 10 years?

Anonymous
timer Asked: Nov 17th, 2015
account_balance_wallet $5

Question Description

What is $85.5 compounded annually for a period of 10 years at a 7.45% interest rate

Tutor Answer

alancheng
School: Carnegie Mellon University

Thank you for the opportunity to help you with your question!

After 10 years your investment is $175.40

There is an annual compound interest formula from Algebra II course.  It should read as follows:

A = P*(1 + r)^t   

A= total amount after t years investing P amount in.

P= initial investment.

t = time in years

 r = interest rate.

P=85.5

r =0.0745

t=10

A = 85.5*(1+0.0745)^10

A = 85.5 * 2.051465

A = $175.40

Please let me know if you need any clarification. I'm always happy to answer your questions.

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Review

Anonymous
Good stuff. Would use again.

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