Answer :
If it compounds monthly at a 5% clip, then it would increase by 50 dollars a month: 1000 x 5% = 50.
There are 12 months to a year, so we have 120 months in 10 years: 12 x 10 = 120.
We can multiply these two numbers together to see how much growth we have:
120 x 50 = 6000.
Add this number back to our original $1,000, and we get $7,000.
There are 12 months to a year, so we have 120 months in 10 years: 12 x 10 = 120.
We can multiply these two numbers together to see how much growth we have:
120 x 50 = 6000.
Add this number back to our original $1,000, and we get $7,000.
