Question

A. Sydney invests $100 every month into an account that pays 5% APR

compounded monthly. How much money will Sydney have in the
account after 10 years? Round your answer to the nearest dollar.

Answer 1

Explanation:

compound interest --> initial sum × increase^years

the increase is 1 + (percentage increase / 100)

initial sum = 100

increase= 1.05

years= 10

100 × 1.05^10 = 162.8894627...

so Sydney will have 164 dollars (to the nearest dollar)