SOLUTION: Bill places $10,000 in an investment account earning an annual rate of 5.1% compounded monthly. Using the formula V=P(1+r/n)^nt, where v is the value of the account in t years, P i

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: Bill places $10,000 in an investment account earning an annual rate of 5.1% compounded monthly. Using the formula V=P(1+r/n)^nt, where v is the value of the account in t years, P i      Log On


   

Question 404442: Bill places $10,000 in an investment account earning an annual rate of 5.1% compounded monthly. Using the formula V=P(1+r/n)^nt, where v is the value of the account in t years, P is the principal initially invested, n is the number of compounds per year, and r is the rate of interest, determine the amount of money, to the nearest cent, that Bill will have after 10 years.
Answer by texttutoring(324) About Me  (Show Source):
You can put this solution on YOUR website!
V=P(1+r/n)^nt

Let's write down what we are given:

P = 10000
r = 0.051
t = 10 years
n = 12 (because it is compounded monthly, or 12 times per year)

V=P(1+r/n)^nt
V = 10000(1+0.051/12)^(12*10)
V = 16634.93

So he will have $16,634.93 after ten years.