The amount of money which is invested at 6.8% compounded monthly, in order to have $10,000 after 10 year is $5076.
<h3>What is compound interest?</h3>
Compound interest is the amount charged on the principal amount and the accumulated interest with a fixed rate of interest for a time period.
The formula for the final amount with the compound interest formula can be given as,
Here, A is the final amount (principal plus interest amount) on the principal amount P of with the rate r of in the time period of t.
The rate of interest is 6.8% on the amount which is compounded monthly
The value of final amount is $10,000 after the time period of 10 years. There are total 12 months a year. Thus, the value of principal amount using the above formula is,
Thus, the amount of money which is invested at 6.8% compounded monthly, in order to have $10,000 after 10 year is $5076.
Learn more about the compound interest here;
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