Question

An amount of $40,000 is deposited in a bank that pays interest at the rate of at 9%/year compounded annually. what is the total amount on deposit at the end of 10 years, assuming there are no deposits or withdrawals during those 10 years?

Answer 1

If the 40,000 gets 9% added to it every year 9% of 40,000 is 3,600 which you multiply by 10 it is 36,000 for the interest plus 40,000 which equals 76,000