Question

Find the value of $10,000 at the end of one year if it is invested in an account that has an interest rate of 4.95% and is compounded in accordance with the rules below. a. compounded monthly

Answer 1

$10,506.39

Step-by-step explanation:

future value = a(1 + r/m)^nm

a = amount = $10,000

r = interest rate = 4.95%

n = number of years = 1

m = number of compounding = 12

$10,000(1 + 0.0495 / 12) ^12 = $10,506.39