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

Question

asked Jun 17, 2020 89.0k views

1 Answer

Shan Eapen Koshy · Answer 1 · 2020-06-23T01:53:36+0000

Answer:

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