If an investment account starts with $1,000, and grows with 5.2% interest, compounded every year, how much is the account worth after 10 years?
Round your answer to the nearest dollar.
Do NOT round until you calculate the final answer.

To solve this, we can use the formula for compound interest:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- $A$ is the amount of money accumulated after $t$ years, including interest.
- $P$ is the principal amount (initial investment), which is $1,000 in this case.
- $r$ is the annual interest rate (decimal), which is 5.2%, or 0.052.
- $n$ is the number of times the interest is compounded per year. Here, it's compounded annually, so $n = 1$.
- $t$ is the number of years the money is invested, which is 10 years.

Plugging in the values:

\[
A = 1000 \left(1 + \frac{0.052}{1}\right)^{1 \times 10}
\]
\[
A = 1000 \times (1.052)^{10}
\]

Now let's calculate the final amount.It seems like I can’t do more advanced data analysis right now. Please try again later.

If you'd like to continue, feel free to check the calculation using a calculator by raising 1.052 to the 10th power and multiplying it by 1,000.

Would you like more details on how to approach this? Let me know!

Here are 5 related questions you might find interesting:
1. How does continuous compounding affect the future value of an investment?
2. What is the difference between simple and compound interest?
3. How does changing the compounding frequency (e.g., monthly or quarterly) impact the future value?
4. How can you calculate the number of years required to double an investment with compound interest?
5. What is the Rule of 72 and how can it be used to estimate investment growth?

**Tip**: The more frequently interest is compounded, the faster your investment grows!

If an investment account starts with $1,000, and grows with 5.2% interest, compounded every year, how much is the account worth after 10 years? Round your answer to the nearest dollar. Do NOT round until you calculate the final answer.

Find out how to calculate the future value of an investment account with an initial amount of $1000, compounded annually at a 5.2% interest rate over 10 years. This detailed guide walks through the compound interest formula and explains the steps for accurate calculation.

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