Question

Your 6 and 2/3 year investment of $1,450 at 5.4% compounded monthly brought you a grand total of?

Answer 1

To calculate the total amount after a 6 and 2/3 year investment at 5.4% compounded monthly, use the formula for compound interest.

Step-by-step explanation:

To calculate the total amount after your 6 and 2/3 year investment of $1,450 at 5.4% compounded monthly, you can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:

• A is the total amount
• P is the principal (initial amount)
• r is the annual interest rate
• n is the number of times the interest is compounded per year
• t is the time in years

Plugging in the values for your investment, we get:

A = 1450(1 + 0.054/12)^(12 * 6 + 2/3)

Calculate this expression to find the grand total of your investment.

Answer 2

The future value of an investment of $1,450 for 6 and 2/3 years at 5.4% compounded monthly is given by


`FV=1,450\left(1+ (0.054)/(12) \right)^{6 (2)/(3) *12} \\ \\ =1,450(1+0.0045)^(80)=1,450(1.0045)^(80) \\ \\ =1,450(1.432)=\bold{\$2,076.65}`