Question

Congratulations! You were the 10th caller on the KMTH morning show and you just won $10,000. After you calm down, you decide to put the money into a bank account so that you will have even more money for a trip to Europe. Snurling Bank tells you that they will pay 8% per year compounded monthly. How much money will you have for your trip in 9 years.

Answer 1

Answer:

You will have $20,495.30

Step-by-step explanation:

If interest is compounded yearly, then n = 1; if semi-annually, then n = 2; quarterly, then n = 4; monthly, then n = 12; weekly, then n = 52; daily, then n = 365; and so forth, regardless of the number of years involved.