Can someone please help me with this question?
1 answer:
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Answer:
Hence By End of the year with monthly compounded interest it will have 5522.56 $
Step-by-step explanation:
Given:
Initial investment =5.280 $
Rate of interest =4.2%
To Find:
Amount after the 1 year
Solution:
As the investment follows the rule for compound interest as ,
A=P(1+R)^t
Here A=amount after t years
R= rate of interest , P= principal amount t is time period
So given is monthly compounded interest
so t will divided into 12 parts as there 12 months in one year.
P=5280 $ , R=4.2/12 % , t=12
^12
A=5522.56 $