Question

Payments of $75 for 10 years at 9.6%/ a compounded annually

Answer 1

The amount after 10 years is $187.57148

Explanation:

we are given

amount deposited is $75

so, P=75

time is 10 years

so, t=10

9.6% compounded annually

so, r=9.6%

r=0.096

now, we can use formula

`A=P(1+r)^(t)`

now, we can plug value

`A=75(1+0.096)^(10)`

we get

`A=187.57148`

So,

The amount after 10 years is $187.57148