Question

Find the ending amount of an investment of $10,000 for 5 years at an interest rate of 10% if

the money is compounded monthly.
$1,218,221.82
$11,200.00
$16,487.22
$16,453.09

Answer 1

9514 1404 393

Answer:

$16,453.09

Explanation:

The future value formula is ...

FV = P(1 +r/12)^(12·t)

For P = 10000, r = 0.10, t = 5, the future value is ...

FV = $10,000(1 +0.10/12)^(12·5) = $10,000(1.64530893) ≈ $16,453.09