Question 62743: Suppose $500 is invested at 6.5% interest, compounded monthly. How much is the investment worth after 10 years? Round to the nearest cent. Answer by joyofmath(189) (Show Source):
You can put this solution on YOUR website! Suppose $500 is invested at 6.5% interest, compounded monthly. How much is the investment worth after 10 years? Round to the nearest cent.
6.5% per year = 6.5%/12 = .54166666666% = .00541666666 per month.
10 years of investment = 10*12 = 120 months.
So, the formula we use is Value after 10 years =
We use a calculator and get = .
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