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Find the amount in an account if $3,500 is invested at 6.12% compounded monthly, for 4.5 years

User David Kay
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1 Answer

6 votes

Answer:

4606.48 $

Explanation:

Amount invested P = 3500 $

Rate of interest r = 6.12%

Compounding monthly

Monthly rate of interest = 6.12/12 =0.51%

Time = 4.5 years = 4.5 (12) = 54 months

Hence final amount would be

P(1+0.01r)^t

Here r = 0.51 and t = no of months = 54

Hence final amount

= 3500(1.0051)^54

= 3500(1.31613)

=4606.48 $

Thus 3500 if invested now will become 4606.48 in 4.5 years at the rate of interest of 6.12% compounding monthly.

User Megakorre
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