Kyle invested 15,000 in a savings account. If the interest rate is 5% per year, how much will be in the account in 10 years with monthly compounding?

Solution

Kyle invested 15, 000 in a savings account. If the interest rate is 5% per year, how much will be in the account in 10 years with monthly compounding?

Solution

Amount : 24705.14

Solution steps

Translate the problem into an equation:

A = 15000 (1 + \frac{0.05}{12})^{12 \cdot 10}

15000 (1 + \frac{0.05}{12})^{12 \cdot 10} = 24705.14246 \dots

Round to the nearest hundredth:

24705.14

Amount : 24705.14

Popular Examples

Grace opened a savings account and deposited 300.00 as principal. The account earns 4% interest, compounded annually. What is the balance after 5 years?If the store has a 20% of sale, what is the original value of the goods she can now buy with a 100 voucher?The area of a circle is 4.8 cm2. Find the circumference of the circle, rounding your answer to 3 significant figures.Tom is going for a walk. He walks 6.4 miles in 4 hours. what is his speed?seven times the difference of a number and 4 is no more than 10