You have 15,000 to invest in a retirement account. The fund increases at a rate of 10% compounded monthly. What will be the value of the investment at the end of 30 years? Round to the nearest dollar.

Solution

You have 15, 000 to invest in a retirement account. The fund increases at a rate of 10% compounded monthly. What will be the value of the investment at the end of 30 years? Round to the nearest dollar.

Solution

Amount : 297560.99

Solution steps

Translate the problem into an equation:

A = 15000 (1 + \frac{0.1}{12})^{12 \cdot 30}

15000 (1 + \frac{0.1}{12})^{12 \cdot 30} = 297560.99059 \dots

Round to the nearest hundredth:

297560.99

Amount : 297560.99

Popular Examples

Ruby invested 300 in an account paying an interest rate of 6.1% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 13 years?Mario invested 280 at 8% interest compounded continuously. Write the exponential function to represent the situation and at what time will the total reach 1,000,000?The diameter of a circle is 4 m. Find its area to the nearest tenth.Find the probability that in five tosses of a fair die a 3 appears once,The sum of 20 and twice a number is-18. Find the number.