Question

ms young invested $5000 at 1.5% interest, compounded monthly. what is the total value of her investment in 10 years

Answer 1

`\bf ~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$5000\\ r=rate\to 1.5\%\to (1.5)/(100)\dotfill &0.015\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &10 \end{cases}`

`\bf A=5000\left(1+(0.015)/(12)\right)^(12\cdot 10)\implies A=5000(1.00125)^(120)\implies A\approx 5808.62708`