If Tara invests $10,000 at 5% interest for 5 years, what will her earnings be at the end?

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the ending amount, P is the principal, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years. Plugging in the given values, we get A = 10,000(1 + 0.05/1)^(1*5) = $12,762.81. Therefore, her earnings will be $12,762.81 - $10,000 = $2,762.81.

If Tara Invests $10,000 at 5% Interest for 5 Years