SOLUTION: A savings account has a nominal annual interest rate of 6%, compounded monthly. If I invest 1000 pounds, what will the balance be after 10 years? Give your answer in pounds, to tw

Question 951168: A savings account has a nominal annual interest rate of 6%, compounded monthly.
If I invest 1000 pounds, what will the balance be after 10 years? Give your answer in pounds, to two decimal places.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A savings account has a nominal annual interest rate of 6%, compounded monthly.
If I invest 1000 pounds, what will the balance be after 10 years? Give your answer in pounds, to two decimal places.
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A(10) = 1000(1+(0.06/12))^(12*10) = 1000(1.8194) = L1819.40
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Cheers,
Stan H.
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