<PRE><B>Question 239748</B>
350 * (1.06)^t = future value of this account.


at the end of 1 year, the account will have 350 * (1.06)^1 = 371


at the end of 2 years, the account will have 350 * (1.06)2 = 393.26


that comes out as 350 * 1.06 * 1.06 


since 350 * 1.06 = 371 * 1.06 = 393.26, the interest earned each year is combined with the principal and then interest is earned on the sum.


at the end of 10 years, the account will have 350 * (1.06)^10 = 626.80




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