personal finance
in this problem: if you wanted to put aside $2,000 a year for 10 years ginven a 10% rate of return (compounded monthly) Here, is it the 10 % every month, or the 10% is divided by 12 months of the year and then every month the % is 0.83%?
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The 10% rate of return is compounded monthly, so that means you will earn 10% of what you have saved each year, which can be broken down further into monthly increments. You would earn 0.83% of what you saved each month, and at the end of each year your money would have grown by 10%.
