Calculate the total amount in an account if you invest $5ooo for the course of 10 years. Compounded monthly paying 5% annually

Question

anonymous · Answer

use compound interest formula.

anonymous · Answer

A=5000(1+0.05)^10

anonymous · Answer

it is compounded monthly, so it is compounded 12 times a year, which means it is compounded 120 times totally.

anonymous · Answer

over ten years.

anonymous · Answer

I miss monthly
than
A=5000(1+0.05/12)^(10*12)

anonymous · Answer

so I have 1.00416666 to the 120th power and then I multyiply that answer by 5000?

anonymous · Answer

yes.

anonymous · Answer

ty:)

anonymous · Answer

you are welcome. you should get 8235.5 or something.

anonymous · Answer

ok, finally got the same thing, calc. kept fading out...

anonymous · Answer

oh. you seem to be on the internet. copy 5000(1+0.05/12)^(10*12) and paste it in google and press enter.

google has a built-in calculator.

anonymous · Answer

oh, thanks, didn't know about that!

anonymous · Answer

you're welcome. next time charge runs out in calculator, there is always google, and wolfram alpha.