The rule of the compounded interest is
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]A is the new amount
P is the initial amount
r is the rate in decimal
n is the number of periods per year
t is the time in years
Since the principal is $1000, then
P = 1000
Since the yearly interest rate is 6%, then change it to decimal by dividing it by 100
r = 6/100 = 0.06
Since the interest is compounded yearly, then
n = 1
Since the time is 10 years, then
t = 10
Substitute them in the rule above
[tex]\begin{gathered} A=1000(1+\frac{0.06}{1})^{(1)(10)} \\ A=1000(1.06)^{10} \\ A=1790.847697 \end{gathered}[/tex]The amount of money in the account after 10 years is $1790.847697
