Question

Investing $10,000 in a savings account at 3% annual interest compounded monthly will result in approximately how much money after
10 years?
formula: A = P(1 + r/m)^mt

O $10, 564.68
O $13, 439.16
O $13, 493.54
O $13,000.00

Answer 1

Answer:

$13,493.54

Step-by-step explanation:

We are gonna use the provided formula: A = P(1 + r/m)^mt

A = Final amount (?)

P = Starting amount (10,000)

r = rate (0.03)

m = times applied (12 since it is compounded monthly)

t = years (10)

A = 10,000(1 + 0.03/12)^12·10

I would suggest using a calculator, but let's try to get a little far with this

A = 10,000(1 + 0.0025)^12·10

A = 10,000(1.0025)^120

A = 13,493.535471908333