Question

24. What is the future value of $5000 compounded monthly in 12years years if interests 3.2%a. $7336.98 b. $7633.98c. $7363.98 d. $6336.98 e. $6633.98

Answer 1

we have the formula for the total accumulated amount:

`A=P(1+(r)/(m))^(mt)`

where

P = $5000

r = 3.2% = 0.032

m = 12 month

t = 12 years

then solve

`A=5000(1+(0.032)/(12))^(12*12)=5000(1.467)=7336.98`

Answer: A. $ 7336.98