Question

Brian deposited $4000 into an account with 5.4% interest, compounded monthly. Assuming that no withdrawals are made, how much will he have in the account after 6 years?

Answer 1

The future value of the amount deposited will be given by:
FV=p(1+r/100n)^nt

where:
FV=future value
p=principle
r=rate
n=terms
t=time
thus substituting our values in the formula we get:
FV=4000(1+5.4/1200)^(6×12)
FV=$5,526.57

Answer: $5,526.57