if you deposit $33000 at 10% interest for 7 yrs what is your balance?

your balance is...66261.37

Scenario 1:

Assuming that you will be re-investing the 10% earnings, your balance will be:

Initial $33000 + gains $31306 = $64306 total

On the assumption that you don’t pay any tax on your gains.

Example: Year 1= 10% of $33000 is $3300. Re-investing it = $33000+$3300 = $36300.

So next year you would be looking at 10% of $36300, and etc.

Scenario 2:

If you take out every year the gains = $3300, so in 7years you’ll have:

Initial $33000 + gains $23100 = $56100 total

Again on the assumption that you don’t pay any tax.

What he said ... and I just want to add that you could estimate this by using the "rule of 72" which stands that if the years multiplied by the interest rate is equal to 72, your money will be doubled. For example, if you make 12% for six years, you double your money. If you make 24% for three years, you will double your money. The 12 x 6 = 72, or the 24 x 3 = 72. This is a useful formula to have to estimate different investment comparisons.

If you didn't add any more money, and the interest was compounded once per year, your balance would be $64,307.66