If 1000 is invested at an interest rate of 10 per year compo

If $1,000 is invested at an interest rate of 10% per year, compounded monthly, find the amount of the investment at the end of 4 years._

Solution

amount invested = $ 1000

interest rate 10% per year compounded monthly

time = 4 years

applying compund interest formula

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

n = 12 for compunded monthly

A = 1000 ( 1 + .10 / 12 ) ^4*12

A = $ 1489.35