Compound Interest Formula:
A = P(1 + r/n)^(nt)
A= Accumulated amount with interest P= principal= $1000
R= annual interest rate (decimal)= 0.05
N= # times compounded per year= 12
T= # of years= 10
A= 1000(1 + 0.05/12)^(12*10)
divide inside parentheses first
A= 1000(1 + 0.0041666667)^ (12*10)
add inside parentheses
A= 1000(1.0041666667)^ (12*10)
multiply exponents
A= 1000(1.0041666667)^120
multiply parentheses by exponents
A= 1000(1.6470095043)
multiply last two numbers
A= $1,647.01 amount after 10 years
ANSWER:
D) $1647.01 total after 10 years
Hope this helps! :)
