Subjects finance

Tax Interest

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Tax Interest


1. The problem asks to find the total amount to pay after 10 years if an initial tax of 9559 is subject to 15% interest per year. 2. This is a compound interest problem where the total amount $A$ after $t$ years is given by the formula: $$A = P(1 + r)^t$$ where $P$ is the principal (initial amount), $r$ is the annual interest rate (as a decimal), and $t$ is the number of years. 3. Substitute the given values: $P = 9559$, $r = 0.15$, and $t = 10$: $$A = 9559(1 + 0.15)^{10} = 9559(1.15)^{10}$$ 4. Calculate $(1.15)^{10}$: $$1.15^{10} \approx 4.045557734$$ 5. Multiply by the principal: $$A \approx 9559 \times 4.045557734 = 38668.68$$ 6. Round down to the nearest integer: $$\boxed{38668}$$ So, after 10 years, you would pay 38668.