Question

A Birr 1,000 deposits is made at a bank that pays 12% interest compounded monthly. How much will be in the account at the end of 10 years? ​

Answer 1

$15400

Explanation:

1 year = 12 month

10 years = 120 months

12% = month

1440% = 120 months

1440% = 14.4

Take 1000 times 14.4 = $14400

So, we add the two numbers

1000 + 14400 = $15400

So, $15400 will be in the account at the end of 10 years.