Question

Determine the value of the account if the initial investment is $8,000 compounded monthly at a rate of 6% after 10 years

Answer 1

$14,555.17

Explanation:

initial investment, p = $8,000

rater, r = 6% = 0.06

Number of times compounded yearly = 12

Time, t = 10 years

Amount, A = p(1 + r/n)^tn

A = 8000(1 + 0.06/12)^10*12

A = $14,555.17