SOLUTION: David deposited $10,000 in an account that pays 5 percent interest compounded annually. how much money did he have in his account after the first 10 years.

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Question 1202578: David deposited $10,000 in an account that pays 5 percent interest compounded annually. how much money did he have in his account after the first 10 years.
Found 2 solutions by ikleyn, mananth:
Answer by ikleyn(52781) About Me  (Show Source):
You can put this solution on YOUR website!
.

    M = 10000%2A%281%2B0.05%29%5E10 = 10000%2A1.05%5E10 = 16288.95  dollars.    ANSWER

Solved.

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To see many other similar  (and different)  solved problems on compounded interest accounts,  look into the lesson
    - Compounded interest percentage problems
in this site.

Learn the subject from there.



Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
Amount after 10 years ?
P=10000
r=5% = 0.05
n= 10
A = p*(1+r)^n
A = 10000*(1+0.05)^10
= $16288.95