Question

You deposit $5000 in an account earning 3% interest compounded monthly. How much will you have in the account in five years?

Answer 1

Answer:

$5808.08

Step-by-step explanation:

The formula for calculating future value:

FV = P (1 + r/m)^mn

FV = Future value  

P = amount deposited = $5000

R = interest rate  = 0.03  

N = number of years  = 5

m = number of compounding = 12

5000 x (1 + 0.03/12)^60 = $5,808.08