Question

4. Determine the amount of a $3000 investment at 9%/a compounded monthly for 6 years. [4 marks]

Answer 1

Answer:

A = $ 5137.65 .

Step-by-step explanation:

Amount = $3000

interest rate = 9 %

                    = 9/12 = 0.75%  

compounded monthly for

time = 6 years.

       = 6 × 12 = 72 months.

$A = P(1+\dfrac{r}{100})^t$

$A = 3000\times (1+\dfrac{0.75}{100})^{72}$

A = $ 5137.65

hence, the amount after compounding $3000 at the rate of 9% after 6 years is  A = $ 5137.65 .