Question

If you say 5000 at 85% interest rate for 10 years compounded annually how much will you have at the end of the 10th year?

Answer 1

`2347941.588`

Explanation:

Total amount at the end of `n=10`th year compounded annually on principle amount `P=5000` at interest rate `r=85%` is given by following

`=P(1+r/100)^n`

`=5000(1+85/100)^10`

`=5000(1.85)^10`

`=2347941.588`