Question

Determine the sum of money that will grow to $2000 in six years at 6% compounded monthly​

Answer 1

The sum of money that will grow in 6 years at 6% is $ 2864.08

Explanation:

Given as :

The principal amount = $ 2000

The time period = 6 years

The rate of interest compounded monthly = 6 %

Let The amount after 6 years = A

From compounded method

Amount = Principal ×
`(1+(\textrm Rate)/(12* 100))^(12* Time)`

Or, A = $ 2000 ×
`(1+(\textrm 6)/(12* 100))^(12* 6)`

Or, A = $ 2000 ×
`(1.005)^(72)`

Or, A = $ 2000 × 1.43204

∴ A = $ 2864.08

Hence The sum of money that will grow in 6 years at 6% is $ 2864.08 Answer