If you invest 5000 in a saving account earning 4 interest co

If you invest $5,000 in a saving account earning 4% interest compounded monthly. How much do you have in your account after 10 years?

Solution

Formula for compounding monthly :

Amount = Principal( 1+r/12)^(12t)

Principal = $ 5000, t = 10 yrs , r = 0.04

So, Amount = 5000( 1+0.04/12)^120

= $ 7464.16 would be the amount in account aftre 10 yrs