Question

$10,000 is invested for 5 years with an APR of 2.75% and monthly compounding.

Answer 1

Answer:

It's worth $11,472.21 after 5 years.

Step-by-step explanation:

2.75% = 0.0275 as a decimal fraction.

The formula for the value after 5 years is:

A = 10,000(1 + 0.0275/12)^(5*12)    where A  is the amount of the investment after 5 years.

= 10,000(1.002291667)^60

=  10000 * 1.14722122

= 11,472.21.

=