Question

Edward Winslow deposited $20,000.00 into a savings account paying 6% annual interest compounded monthly. What amount will be in the account after 6 years? How much compound interest will he have earned?

Answer 1

$28360

Explanation:

Step one:

Given data

P=20000

rate= 6%

time= 6years

Step two:

compound interest

A=P(1+r)^t

substitute

A=20000(1+0.06)^6

A=20000(1.06)^6

A=20000*1.418

A=$28360