Investment basics · Question 12 of 12
10,000 euros are invested for ten years at 6% a year, with all income reinvested. Roughly what final amount results (without costs and taxes)?
1 answer is correct. Hard
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Answer
- D About 17,900 euros
Explanation
10,000 × 1.06¹⁰ ≈ 10,000 × 1.7908 ≈ 17,908 euros. Without compounding it would be 10,000 + 10 × 600 = 16,000 euros. The difference of around 1,900 euros is the compound interest effect.