Question

4. Determine the amount of a $3000 investment at 9%/a compounded monthly for 6 years. [4 marks]

Answer 1

A = $ 5137.65 .

Explanation:

Amount = $3000

interest rate = 9 %

= 9/12 = 0.75%

compounded monthly for

time = 6 years.

= 6 × 12 = 72 months.

`A = P(1+(r)/(100))^t`

`A = 3000* (1+(0.75)/(100))^(72)`

A = $ 5137.65

hence, the amount after compounding $3000 at the rate of 9% after 6 years is A = $ 5137.65 .