Question

the compound interest formula a=p(1+r/n)^nt where p is the initial amount invested, r is the interest as a decimal, n is the number of times compound annually, the the number of years. Determine the value of the account if the initial investment is $8,000 compounded monthly at a rate of 6% after 10 years.

Answer 1

Answer:

Option (D)

Step-by-step explanation:

Formula to calculate the final amount after 't' years is,

A = $P(1+\frac{r}{n})^{nt}$

Here P = Initial amount

r = rate of interest

n = number of times compounding done

t = duration of investment

For A = $8000

r = 0.06

t = 10 years

n = 12 (compounded monthly in a year)

Therefore, final amount = $8000(1+\frac{0.06}{12})^{12\times 10}$

                                        = $8000(1+0.005)^{120}$

                                        = $8000(1.005)^{120}$

                                        = 8000(1.8194)

                                        = $14555.17

Therefore, Option (D) will be the answer.

Answer 2

Answer:

the answer is d

Step-by-step explanation:

$14,555.17