Question

Linda deposited $4000 into an account with 5.7% interest, compounded monthly. Assuming that no withdrawals are made, how much will she have in the account after 4 years? Do not round any intermediate computations, and round your answer to the nearest cent.

Answer 1

The formula is
A=p (1+r/k)^kn
A future value?
P present value 4000
R interest rate 0.057
K compounded monthly 12
N time 4years

A=4,000×(1+0.057÷12)^(12×4)
A=5,021.63