Answer :
Answer:
A = $1647.01
General Formulas and Concepts:
Pre-Algebra
- Order of Operations: BPEMDAS
Algebra I
Compounded Interest Rate Formula: [tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
- A is final amount
- P is principle amount
- r is rate
- n is compounded terms
- t is time (in years)
Step-by-step explanation:
Step 1: Define variables
P = 1000
r = 5% = 0.05
n = 12
t = 10
Step 2: Solve
- Substitute: [tex]A=1000(1+\frac{0.05}{12} )^{12(10)}[/tex]
- Divide: [tex]A=1000(1+0.004167 )^{12(10)}[/tex]
- Add: [tex]A=1000(1.004167 )^{12(10)}[/tex]
- Multiply: [tex]A=1000(1.004167 )^{120}[/tex]
- Exponent: [tex]A=1000(1.64701)[/tex]
- Multiply: [tex]A=1647.01[/tex]