Question 691473: Juan is going to deposit $1,000 in an account that will earn him compund interest. The account pays 8% interest, compounded monthly. How much money will he have after 10 years?
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! Juan is going to deposit $1,000 in an account that will earn him compund interest. The account pays 8% interest, compounded monthly. How much money will he have after 10 years.
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compound interest formula: A=P(1+r)^n, P=initial investment, r=interest rate per period, A=amt after n periods.
For given problem:
P=1000
r=.08/12
n=10*12=120
..
A=1000(1+.08/12)^120=2219.64
How much money will Juan have after 10 years. $2219.64
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