At the beginning of each year, Joe invests $10,000 in his retirement fund. The fund gives 10% interest, compounded annually. At the end of the third year, how much money will be in Joe's fund?
+23254 interest = principal x rate x time
End of the first year:
---> interest earned = $10,000 x 0.10 x 1 = $1000
---> total value = $10,000 + $1,000 = $11,000
End of the second year:
---> interest earned = $11,000 x 0.10 x 1 = $1100
---> total value = $11,000 + $1100 = $12,100.
End of the third year:
---> interest earned = $12,100 x 0.10 x 1 = $dddd
---> total value = $12,100 + $dddd = $answer
+23254 interest = principal x rate x time
End of the first year:
---> interest earned = $10,000 x 0.10 x 1 = $1000
---> total value = $10,000 + $1,000 = $11,000
End of the second year:
---> interest earned = $11,000 x 0.10 x 1 = $1100
---> total value = $11,000 + $1100 = $12,100.
End of the third year:
---> interest earned = $12,100 x 0.10 x 1 = $dddd
---> total value = $12,100 + $dddd = $answer
