You deposit $10000 into a CD with 5% interest compounded monthly. The CD will last 10 years. When you use the compound interest formula we discussed to find the amount you will have after 10 years, you will have: PN = 10000(a number). What is the number? Round to 3 decimal places.

You deposit $10000 into a CD with 5% interest compounded monthly. The CD will last 10 years. When you use the compound interest formula we discussed to find the amount you will have after 10 years, you will have: PN = 10000(a number). What is the number? Round to 3 decimal places.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

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You deposit $10000 into a CD with 5% interest compounded monthly. The CD will last 10 years.
When you use the compound interest formula we discussed to find the amount you will have after
10 years, you will have:
PN = 10000(a number).
What is the number? Round to 3 decimal places.

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