$10,000 is put in a investment account today.The investment account compounds interest at a rate of 1% per month.What amount will be available five years from today?
A)$10,510
B)$16,000
C)$17,623
D)$18,167

Question

Quizplus · Accepted Answer

The future value of an investment compounded monthly is calculated using the formula: FV = P(1 + r/n)^(nt), where P is the principal amount ($10,000), r is the annual interest rate (0.12), n is the number of times interest is compounded per year (12), and t is the number of years (5). Plugging in the values, FV = 10000(1 + 0.01)^(12*5) = $18,167.

$10,000 Is Put in a Investment Account Today