part 2 of 3\nthe future value of $10,000 using 4% interest compounded monthly is $ .\nround your answer to…

Explanation:

Step1: Identify the compound - interest formula

The compound - interest formula is $A = P(1+\frac{r}{n})^{nt}$, where $A$ is the future value, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), $n$ is the number of times interest is compounded per year, and $t$ is the number of years. Given $P=$10000$, $r = 0.04$ (since $4%=0.04$), $n = 12$ (compounded monthly), and assume $t = 1$ year (if not specified otherwise, we usually calculate for 1 - year period in basic compound - interest problems).

Step2: Substitute the values into the formula

$A=10000(1 +\frac{0.04}{12})^{12\times1}$. First, calculate $\frac{0.04}{12}\approx0.003333$. Then $1+\frac{0.04}{12}=1 + 0.003333=1.003333$. Next, $(1.003333)^{12}\approx1.0407415$. Finally, $A = 10000\times1.0407415=$10407.42$.

Answer:

$10407.42$