How to compute the annual savings of 10000 pesos of money for 10 yeares at 10% interest?

Question

What is the formula to compute the annual savings earned for 10 years of 10000 pesos at 10% interests rate?

Answer 1

How old are you? )))

use the simpliest calculator

1.1*10000= = = = = = = = = =

(press = button 10 times)

The correct answer is 25937.423 (interest compounded annually)

Answer 2

Answer #1:  at 10%/year, the equation (formula) for computing the value of 10,000 pesos compounded annually for 10 years at 10%/year is:  P*(1+i)^n = 10000*(1+.1)^10 = 10000*1.1^10 = 10000*2.594 = 25940.  Your total interest is 25940 - 10000 = 15940 pesos.

Answer #2:  if you're investing 10000 pesos every year for 10 years at 10% you'll need a different and more complex equation.

Answer #3:  if you're investing 10000 pesos/year at random intervals, you'll need still another equation and a computer to figure it out.

10% is probably an unrealistic rate and would come only with a lot of unpredictable risk.