Jane deposited $10,000 into her bank account in December, 2010. Her account earns interest at a rate of 5% compounded monthly. How much money will she have in December of this year (2018) ?

Round your answer to the nearest whole number.

Compound Interest: A = P (1 + r/n) ^nt

14905.85

Step-by-step explanation:

P (1+r/n) ^nt

10000 (1 + (.05/12)) ^ (12*8)

she will have $14,906 in December of year 2018

Step-by-step explanation:

To find the amount of money she will have in December of the year 2018, we will simply use the formula;

Compound Interest: A = P (1 + r/n) ^nt

where p = principal

R = rate

n = the number of times the interest is compounded per unit time

T = time

A = Accrued amount

From the question

Principal (p) = $10,000

Rate (r) = 5% = 0.05

Time (t) = 2018-2010 = 8 years

n = 12

We can now proceed to insert the values into our formula;

Compound Interest: A = P (1 + r/n) ^nt

= $10 000 (1 + 0.05/12) ^12*8

=$10,000 (1 + 0.00416667) ^96

= $10 000 (1.00416667) ^96

=$10 000 (1.4905859)

=$14,905.895

≈$14,906 to the nearest whole number.

Therefore she will have $14,906 in December of year 2018