Question 284661: you put 5000$ in the bank the beginning of the year. From there, you earn 10% interest each year. how much money do you make after 50 years?
Found 3 solutions by mananth, richwmiller, ikleyn:
Answer by mananth(16949)   (Show Source):
You can put this solution on YOUR website! The formula for amount =p(1+(r/100))^n
p=50,000
r=10
n=50 years
Amount = 50000(1+10/100)^50
= 50000(11/10)^50
=$5,869,542.64 will be the amount after 50 years
Answer by richwmiller(17219)  (Show Source):
Answer by ikleyn(53878)  (Show Source):
You can put this solution on YOUR website! .
you put 5000$ in the bank the beginning of the year. From there, you earn 10% interest each year.
how much money do you make after 50 years?
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Calculations in the post by @mananth are incorrect, producing wrong answer,
and his error is HUGE ( in 10 times !).
Below I place my correct solution.
The formula for amount = p(1+r)^n
p = 5,000
r = 0.1
n = 50 years
Amount = 5000(1+0.1)^50
= 5000*1.1^50
= $586,954.26 will be the amount after 50 years
Solved correctly.
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