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If $10000 is invested at an interest rate of 10% per year, compounded monthly, find the value of the investment after

User Williaan Lopes
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1 Answer

10 votes
10 votes

Answer:

$10510

Explanation:

The question is not complete, here is the correct question

If $10000 is invested at an interest rate of 10% per year, compounded monthly, find the value of the investment after 5 years

Given data

Principal= $10000

interest= 10%

time= 5 years

Required

The final amount

The compound interest formula is

A= P(1+r)^t

substitute

A= 10000(1+0.1)^5

A= 10000(1.01)^5

A= 10000*1.051

A= $10510

Hence the investment will be $10510

User Whereisalext
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