SOLUTION: Marcella wins third prize and receives check for $250,000. After spending $10,000 on a vacation, she decides to invest the rest in a money market account that pays 1.5% interest

Question 89108: Marcella wins third prize and receives check for $250,000. After spending $10,000 on a vacation, she decides to invest the rest in a money market account that pays 1.5% interest compounded monthly. How much maney will be in the accoung after 10 years?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
First subtract the amount she spent from the amount she had:
250,000-10,000=240,000

So she invested $240,000

Start with the given formula
Plug in p=240000, r=0.015, n=12, and t=10
Divide 0.015 by 12 to get 0.00125
Multiply the exponents 12 and 10 to get 120
Add 1 and 0.00125 to get 1.00125
Raise 1.00125 to the 120 th power to get 1.16172541654837
Multiply 240000 and 1.16172541654837 to get 278814.09997161

So after ten years, she will have $278,814.10 in her account.
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