Question

By what percentage will an amount gro in 10yeare if it is invested at 5% p.a. compounded monthly​

Answer 1

Answer:

64.7%

Step-by-step explanation:

To solve this problem we use compounded interest formula.

$a = p(1 + (r \div n))^{nt}$

a = amount

p = principle

r = interest rate

n = number of times compounded in a period

t = time period

$a = 1000(1 + (.05 \div 12)^{12 \times 10}$

a = 1647.01

1647.01-1000 = 647.01

647.01/1000 = 0.64701

0.64701*100% = 64.7%