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25 September, 20:30

What would be the value of $100 after 10 years if you earn 11 percent interest per year?

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Answers (2)
  1. 25 September, 21:00
    0
    If the interest is simple interest, then the value is

    100 [ 1 + (10 x 0.11) ] = 100 (1 + 1.1) = 100 x 2.1 = $210.

    If the interest is compound interest, and is compounded annually,

    then the value is

    100 (1 + 0.11) ¹⁰ = 100 (2.8394) = $283.94.

    If the interest is compound interest, and is compounded monthly,

    then the value is

    100 (1 + 0.11/12) ¹²⁰ = 100 (2.9891) = $298.91.

    That's why compound interest is better than simple interest.
  2. 25 September, 23:14
    0
    Well 11% of 100 is 11 dollars so ... 11 * 10 = 110

    so add 100$ to that and you get 210. so the value of $100 after 10 years is $210
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