math

posted by .

Mr. puts $10,000 into a CD that pays 8.5% interest compounded monthly. If he keeps the money invested for 10 years, what will be the value at the end of 10 years?

  • math / -

    Pt = Po*(r+1)^n.

    r = (8.5%/12mo) / 100% = 0.0070833 =
    MPR=Monthly Percentage rate expressed as a decimal.

    n = 12comp/yr * 10yrs = 120 compounding
    periods.

    Pt=10,000*(1.0070833)^120 = $23,326.47.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math

    Please check my work, thank you If $7,800 is deposited into an account paying 6% interest compounded annually (at the end of each year), how much money is in the account after 2 years?
  2. Algebra

    Greta invests $10,000 in an investment that pays 3% interest, compounded annually, for the first three years, then 9% interest, compounded annually, for the last three years. Rui invests $10,000 in an investment that pays r% for all …
  3. Plz Hel, word problem:)

    I have tried hard to solve, but I'm stuck.... Let’s use our knowledge of quadrantic equations to analyze a real world business application. If P dollars is invested at r rate of interest compounded anually t years, then the amount …
  4. algebra

    $7,000 is invested into two accounts: 4,000 into an account paying 5% interest compounded monthly and $3,000 into an account paying 4.1% interest compounded continuously. compute the total interest earned at the end of 2 years.
  5. econ

    You are making $1,000 monthly deposits into a fund that pays interest at a rate of 6% compounded monthly. What would be the balance at the end of 10 years?
  6. Finite Math and Applied Calculus

    Betty Sue sets up a retirement account. For the first 35 years, she deposits $500 at the end of each month into an account with an annual interest rate of 3.6%, compounded monthly. Then, she stops making monthly payments and transfers …
  7. math

    If $15,000 is invested at an interest rate of 10% per year, compounded monthly, find the value of the investment after the given number of years. (Round your answers to the nearest cent.) a. 6 years b. 12 years c. 18 years
  8. Mathematics and investment

    1. Angelo wants to renovate his house in 3 years. He estimates the cost 300,000. How much must Angelo invest now at 8% compounded quarterly in order to have 300,000 3 years from now. 2. Angelo Ancis want to save 500,000 in 5.5 years …
  9. PLEASE HELP Math

    As a fringe benefit for the past 8 years, Colin's employer has contributed $50 at the end of each month into an employee retirement account for Colin that pays interest at the rate of 8%/year compounded monthly. Colin has also contributed …
  10. MATH

    Tiffany invested $725 at the end of every month in an investment fund that was earning interest at a rate of 4.74% compounded monthly. She stopped making regular deposits at the end of 10 years when the interest rate changed to 6.69% …

More Similar Questions