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MrRissso [65]
2 years ago
9

Congratulations! You were the 10th caller on the KMTH morning show and you just won $3,000.00. After you calm down, you decide t

o put the money into a bank account so that you will have even more money for a trip to Europe. Snurling Bank tells you that they will pay 9% per year compounded monthly. How much money will you have for your trip in 5 years
Business
1 answer:
VashaNatasha [74]2 years ago
8 0

Answer:

$4,697.04

Explanation:

In simple words , this question requires us to find the Future Value in 5 years time. We compound the Present Value using the effective interest rate to determine the Future Value of an investment.

<em>PV = $3,000.00</em>

<em>P/YR = 12</em>

<em>N = 5 x 12 = 60</em>

<em>I = 9 %</em>

<em>PMT = $0</em>

<em>FV = ?</em>

Using a Financial calculator to enter the parameters as above the Future Value (FV) is $4,697.04

therefore,

In 5 years time, you will have $4,697.04.

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