Alex has obtained $1,000 and he takes it to the bank where the account is compounded monthly at 5%. He will leave it for 10 years. How much money will he have after 10 years?

Question

Mathematics

Oconnor

20 May, 18:36

Alex has obtained $1,000 and he takes it to the bank where the account is compounded monthly at 5%. He will leave it for 10 years. How much money will he have after 10 years?

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Answers (1)

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Turtle · Answer 1

A = P (1 + R/N) to the power of nt

where A = amount

P=principal

R = rate

N = number of times per year interest is compounded

and nt = time in a year

1000 (1 + 5%/12) to the power of 10 = $1042.46