Question

You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be 40 years from now if you decide to make the initial deposit today rather than 10 years from today

Answer 1

Answer:

amount after 40 year will be $314094.2

Explanation:

We have given principal amount P = $10000

Annual interest r = 9 %

Time period n = 40 years

We have to find the amount after 40 years

Amount is given by

$A=P(1+\frac{r}{100})^n$

So the amount will be  $A=10000(1+\frac{9}{100})^{40}=314094.2$

So amount after 40 year will be $314094.2