Albert's money:
1st line Period is ONE month total periods = 10 years x12 month/yr = 120 periods
Interst per period is .012/12 = .001
Principle = 1000
At the end of 10 years value = 1000 (1.001)120
2nd line 500 - 500(.02)
3rd line Continuous compounding at .008 is 500 e10(.008) = $ 541.64
Add the red quantities to get Albert's final amount at the end of the ten years.....