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?
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.