Question

Isabel deposits $6,000 into an account that earns 1.5% interest compounded monthly. Assuming no more deposits and no withdrawals are made, how much money is in the account after 4 years?

Answer 1

Answer:

$6370.78$

Step-by-step explanation:

The amount collected when compounded monthly $A = P (1 + \frac{r}{n})^{nt}$

Where,

A = Total Amount (principal + interest)

P = Principal Amount

I = Interest Amount

r = Monthly nominal interest Rate

t = Time Involved in years

n = number of compounding periods per unit

Substituting the values in above equation, we get -

$A = P (1 + \frac{r}{n})^{nt}\\= 6000 (1 + \frac{1.5}{100 *12} )^{12 x 4}\\= 6370.78$

Answer 2

Fv=6,000×(1+0.015÷12)^(48)
Fv=6,370.78