Question

Alissa deposited $1500 in an account that earns 6% interest for 10 years. How much money will Alissa have in her account at the end of 10 years, assuming she does not add or withdraw any additional funds?

Answer 1

To calculate the amount Alissa will have in her account at the end of 10 years, we can use the formula for compound interest. In this case, Alissa will have $2,686.27 in her account at the end of 10 years.

Step-by-step explanation:

To calculate the amount Alissa will have in her account at the end of 10 years, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

• A is the final amount
• P is the principal amount (the initial deposit)
• r is the annual interest rate (in decimal form)
• n is the number of times interest is compounded per year
• t is the number of years

In this case, Alissa deposited $1500 at an interest rate of 6% for 10 years, compounded annually.

Using the formula:

A = 1500(1 + 0.06/1)^(1*10)

Simplifying:

A = 1500(1.06)^10

A = 1500(1.790847)
A = $2,686.27

Therefore, Alissa will have $2,686.27 in her account at the end of 10 years.