Question

7. If Paul invested $10,000 today and also added $100 every month, how much money would he have in his account at the end if the interest rate on his investment is 8% compounded monthly?

A. $23,037

B. $115,345

C. $11,717

D. $40,491

Answer 1

Paul will have at the end of the year following sum

=10000(1+(8%/12))^12+100(1+(8%/12))^11+100(1+(8%/12))^10+100(1+(8%/12))^9+100(1+(8%/12))^8+100(1+(8%/12))^7+100(1+(8%/12))^6+100(1+(8%/12))^5+100(1+(8%/12))^4+100(1+(8%/12))^3+100(1+(8%/12))^2+100(1+(8%/12))^1

=$11974.99

The option that goes closer is OptionC (Note: Kindly recheck the options provide they all seem to be incorrect. In this question timeperiod is missing i have chosen 1 year as default if it is not 1 year then increase the power of term (1+(8%/12)) accordingly)

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