Question

5,000 is invested for 14 years with an apr of 5% and monthly compounding

Answer 1

Answer:

$10054.69

Step-by-step explanation:

If the interest rate is 5% APR and monthly compounded, then the monthly interest rate is $\frac{5}{12} = 0.4167\%$.

Now, if the sum is invested for 14 years with a monthly compound, then the principal is compounded for (14 × 12) = 168 times.

Now, using the formula of compound interest, the principal of $5000 will give the sum of

$5000(1 + \frac{0.4167}{100})^{168} = 10054.69$ dollars. (Answer)