Question

What will a deposit of $4,500 at 12% compounded monthly be worth at the end of 10 years?

Answer 1

13976.32

Explanation:

Formula for Compund Interest

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

Where

A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for

So,

`A = 4500 (1 + 0.12 / 1)^(1**10)`

`A = 4500 (1.12)^10`

`A = 4500 ** 3.10584820834420916224`

`:.`

`A = 13976.32`