Question

Maria’s parents invested 14,000 at 6% per year compounded monthly. How much money will there be in the account after 10 years?

Answer 1

So what you do is multiple 14000x.06 which is 860 dollars per month now since there is 12 months in a year and ten years multiple 10x12 which is 120 so then multiply 120x860 because its 6 percent of 14000 is 860 so then that’s how much is put in each month after ten years which is 120 months you multiply them together to get 100,800

Answer 2

Answer:$25466 will be in the account after 10 years.

Step-by-step explanation:

Initial amount that Maria’s parents invested into the account is $14000 This means that the principal so

P = 14000

It was compounded monthly. This means that it was compounded 12 times in a year. So

n = 12

The rate at which the principal was compounded is 6%. So

r = 2/100 = 0.06

It was compounded for 10 years. So

t = 10

The formula for compound interest is

A = P(1+r/n)^nt

A = total amount in the account at the end of t years. Therefore

A = 14000 (1+0.06/12)^12×10

A = 14000 (1.005)^120

A = 14000(1.819) = $25466