SOLUTION: I invest $10,000 today in an account that pays 4.25% annual interest, compounded annually how much will I have in 18 years

Question 971148: I invest $10,000 today in an account that pays 4.25% annual interest, compounded annually how much will I have in 18 years
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
From rule of 72, which is for continuous compounding, the money will be slightly more than double. That is the estimate.
A=Principal {1 + interest rate/compounding per year}^number of compoundings over the period.
A+10,000 {1+ 0.0425)}^18
A= 21,152.86

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