117k views
4 votes
A $3000 deposit for 66 months compounded at an interest rate of 1.6% .

1 Answer

4 votes

The correct question is

Find the accumulated amount after 66 months compounded if $3000 is deposited at an interest rate of 1.6%

t=66 months------------ >66/12=5.5 years

F = P*(1 +(r/m))^n

r=1.6%---------- >0.016
m=12
(number of compounding periods per year)

n=m*t---------- >12*5.5=66
we have
P=3000
t=5.5 years
F = 3000*(1 +(0.016/12))^66------------------ >3275.77 dollars

the answer is 3275.77 dollars

User Derek Corcoran
by
5.6k points