Question

Find the balance in the account after the given period. $5,700 deposit earning 4.2% compounded monthly, after 4 years. What is the balance after 4 years?

Answer 1

The formula is

A=p (1+r\\)^n t

A future value?

P present value 5700

R interest rate 0.042

N compounded monthly 12

T time 4years

A=5,700×(1+0.042÷12)^(12×4)

A=6,740.76