Question

Thomas puts $1100 into a savings account that earns 4.5% interest compounded monthly. How much money will he have in savings in 6 years?

If someone does a non-mathematical answer just for the points, I will report them. Thank you.

Answer 1

$1440.23

Explanation:

The formula for calculating future value of a sum compounded at specified times =

FV = PV x (1 + r/m)^nm

FV = Future value

P = Present value

R = interest rate

N = number of years

m = number of compounding

$1100 x ( 1 + 0.045 /12) ^12x6 = $1440.23