Suppose you deposit $1000 in a CD paying 5% interest, compounded monthly. How much will you have in the account after 10 years? Show your solutions

A = $1647.01

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

Algebra I

Compounded Interest Rate Formula:

A is final amountP is principle amountr is raten is compounded termst 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:                    Divide:                          Add:                              Multiply:                        Exponent:                     Multiply:                        

He will need 2,898 pieces of paper