SOLUTION: Suppose an investment of $25000 is placed in an account earning 5.5% interest compounded annually. Determine the value of the investment after 10 years.

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Question 127745: Suppose an investment of $25000 is placed in an account earning 5.5% interest compounded annually. Determine the value of the investment after 10 years.
Answer by JessicaGill(40) About Me  (Show Source):
You can put this solution on YOUR website!
For the first year, take 25000.00 and multiply it by 5.5%
%2825000.00%2A0.055%29%2B25000.00=26375.00
For each subsequent year, take the previous year (including interest) and multiply by 5.5 percent. At the end of 10 years you should come up the the answer of 42703.61
Year 2
%2826375.00%2A.055%29%2B26375.00=27825.63
Continue on until you reach year 10