If you put $10,000 in an investment that returns 11 percent compounded monthly what would you have after 10 years (round to nearest $1)?
A)$29,892
B)$27,559
C)$25,486
D)$22,489

Question

Quizplus · Accepted Answer

We can use the formula for compound interest:

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

where A is the amount after time t, P is the principal (initial) amount, r is the annual interest rate (as a decimal), n is the number of times the interest is compounded per year, and t is the time in years.

In this case, we have P = $10,000, r = 0.11, n = 12 (since the interest is compounded monthly), and t = 10. Plugging these values into the formula, we get:

A = $10,000(1 + 0.11/12)^(12*10) = $29,891.75

Rounding to the nearest dollar, we get:

Answer: A

If You Put $10,000 in an Investment That Returns 11