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

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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) About Me  (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

A=p%281%2Br%2Fn%29%5E%28n%2At%29 Start with the given formula
A=240000%281%2B0.015%2F12%29%5E%2812%2A10%29 Plug in p=240000, r=0.015, n=12, and t=10
A=240000%281%2B0.00125%29%5E%2812%2A10%29 Divide 0.015 by 12 to get 0.00125
A=240000%281%2B0.00125%29%5E%28120%29 Multiply the exponents 12 and 10 to get 120
A=240000%281.00125%29%5E%28120%29 Add 1 and 0.00125 to get 1.00125
A=240000%281.16172541654837%29 Raise 1.00125 to the 120 th power to get 1.16172541654837
A=278814.09997161 Multiply 240000 and 1.16172541654837 to get 278814.09997161

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