Given :
Reggie deposited $1,000 into an account that earns 5% compound interest monthly.
To Find :
Worth of money after 10 years.
Solution :
We know, final amount is given by :
[tex]A=P(1+\dfrac{r}{n})^{nt}[/tex]
Here, P = initial balance
r = interest rate
n = number of times interest applied per time period
t = number of time period
Putting all given values in above equation, we get :
[tex]A=1000(1+\dfrac{0.05}{12})^{12\times 10}\\\\A =\$1647.01[/tex]
Therefore, money in his account after 10 years is $1647.01 .
Hence, this is the required solution.
