If you invest $1,000 today into a deposit account earning 5.75% interest compounded monthly, how much...

If you invest $1,000 today into a deposit account earning 5.75% interest compounded monthly, how much would your investment be worth in 10 years?

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Expert Solution

	A/c balance after 10 years	PV×(1+r)^n

	Here,

1	Interest rate per annum	5.75%
2	Number of years	10
3	Number of compoundings per per annum	12
1÷3	Interest rate per period ( r)	0.48%
2×3	Number of periods (n)	120
	Present value (PV)	$ 1,000

	A/c balance after 10 years	$ 1,774.69
		1000*(1+0.48%)^120

jeff jeffy answered 1 year ago

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