What principle will amount to $6000 if invested at 5.5% compounded monthly for 10 years?
1 answer:
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Answer:
V = $1213.03
Step-by-step explanation:
We can determine the amount of money after 15 years with the given formula:
(1)
Where:
V: is the value of the account in t years =?
P: is the principal initially invested = $686
r: is the rate of interest = 3.8% = 3.8/100 = 0.038
t: is the time = 15 years
By substituting the above values into equation (1) we have:
Therefore, the amount of money is $1213.03.
I hope it helps you!