Chapter 7.6, Problem 1CE

To determine

Calculate the money after 10 year at 6% interest in bank.

Answer to Problem 1CE

After 10 year the money will be in account

  $Mony=\text{179}\text{.0848}$

Explanation of Solution

Given: The initial deposit and interest rate is given

  $\begin{array}{l}Deposit=\$100\\ \mathrm{int}erest=6\%\end{array}$

Calculation:

The initial deposit is

  $Deposit=\$100$

So, after one year the money will be

  $\text{100+100(0}\text{.06)=106}$

And after two year it will be

  $\text{106+106(0}\text{.06)=112}\text{.36}$

So similarly, after two year it will be

  $Mony=\text{179}\text{.0848}$

program:

clc
clear
close all
interest=6./100;
year=1:10;
deposit=100;
fori=1:10
deposit=deposit+deposit*interest
end

Query:

• First, interest rate.
• Then define the time.
• Define the initial deposit.
• Then calculate the money after 10 year.