Given: An investment of $20000 for 5 years at an interest rate of 6.5%.
Required: To determine the accumulated value if the money is compounded monthly.
Step-by-step explanation: The formula for compound interest is as follows-
Here, n=12 as the money is compounded monthly in a year. Also
Substituting the values into the formula as-
Further solving-
Final Answer: The accumulated value is $27,656.35