Question

Calculate the future value. (Round your answer to two decimal places.)P = $27,000, r = 7% compounded monthly, t = 6 years

Answer 1

Step-by-step explanation:

Given:

Principal, P = $27,000

Rate, r = 7% = 0.07

Time, t = 6 years

Number of time compounded per year, n = 12.

We obtain the future value using the formula:

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

Substituting the given values, we have:

`\begin{gathered} A=27000(1+(0.07)/(12))^(12*6) \\ \\ =A=27000(1+(0.07)/(12))^(72) \\ \\ =41042.85 \end{gathered}`