SOLUTION: Suppose you receive a bonus from your employer in the amount of $5,000. You decide to deposit the money into an investment account that earns 2% interest per year compounded monthl

Question 586494: Suppose you receive a bonus from your employer in the amount of $5,000. You decide to deposit the money into an investment account that earns 2% interest per year compounded monthly. How much money will be in the account at the end of 10 years?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Suppose you receive a bonus from your employer in the amount of $5,000. You decide to deposit the money into an investment account that earns 2% interest per year compounded monthly. How much money will be in the account at the end of 10 years?
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A(10) = 5000(1+(0.02/12))^(12*10)
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= 5000(1.0017)^120
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= $6106.00
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Cheers,
Stan H.
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