Question
Hi. Can you please explain why when I typed in (1.06)^5(1.1)^5-1 in the calculator I get an answer that is different from when I typed 500(1.06)^5(1.1)^5-1?
Also the correct answer is written in red, but I got 1076.61. Is it just the calculators or is it because of the math? If so please explain.
Stock son Do Accumulated retums % after 10 years (106) 5 (1.10)5-1 (Accumu Accumulated returns % aster 10 years = (1+69J5 (1+
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Answer #1

hi ..

correct way of doing this is as below

Accumulated return % = =(1.06)^5*(1.1)^5-1 = 115.5225675% (This one is correct in your solution)..

Accumulated amount = Amount invested + Return on investment

Amount = 500+500*115.5226% = 500+577.61 = 1077.61

Do let me know if you need any clarification .

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