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1 April, 04:55

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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  1. 1 April, 05:33
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    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
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