Question

If $30,000 is deposited in a savings account at the end of each year and the account pays interest of 5% compounded annually, what will be the balance of the account at the end of 10 years?

Answer 1

· Balance of the account at the end of 10 years = $ 377,337

	Beginning investment balance	Interest earned	Amount invested	Ending investment balance
Year	[A]	[B= A x 5%]	[C]	[D = A+B+C]
1	$0	$0	$30,000	$30,000
2	$30,000	$1,500	$30,000	$61,500
3	$61,500	$3,075	$30,000	$94,575
4	$94,575	$4,729	$30,000	$129,304
5	$129,304	$6,465	$30,000	$165,769
6	$165,769	$8,288	$30,000	$204,057
7	$204,057	$10,203	$30,000	$244,260
8	$244,260	$12,213	$30,000	$286,473
9	$286,473	$14,324	$30,000	$330,797
10	$330,797	$16,540	$30,000	$377,337 [Answer]