Question

The Houston Asterisks have a knack for cheating, and they have decided to pay the MLB umpires for the upcoming baseball season. The Asterisks are asking for favorable calls. The baseball season is 7 months long (April – October) and the umpires will receive a monthly payment of $10,000. They will put that money into their bank account at the beginning of the month with a monthly return rate of 15%. How much money is in the account at the end of the baseball season at the end of all 7 months?

Answer 1

We are having 10000 rs at the beginning of each month for a period of 7 months for investing @15% per month.

For solving this question, we will use compounding interest method.

We will create a table for solving this question:

Month	Initial principal	Monthly Payment	Amount Invested	Interest Rate	Amount at month end
1	0	10000	10000	.15	11500 [(1+.15)*10000]
2	11500	10000	21500	.15	24725
3	24725	10000	34725	.15	39933.75
4	39933.75	10000	49933.75	.15	57423.81
5	57423.81	10000	67423.81	.15	77537.38
6	77537.38	10000	87537.38	.15	100668
7	100668	10000	110668	.15	127268.2

So the Amount at the end of 7 month will be 127268 .