Question

You want to save for a brand-new car. You put the $5,000 your Grandma gave you when you graduated in an account that pays 6% interest and is compounded monthly. How much will you have at the end of five years?

Answer 1

Answer:

Balance at the end of 5 years: $7,346.64

Step-by-step explanation:

A = P(1+r/n)nt

Principal: 5,000

Rate of Interest: 6%

Number of Times, Compounded In A Year: 12

Year: 5 years

A = 5,000(1+1.06/12)^5

A = 5,000(1.08)^5

A = 7346.64