Answer: The maturity value of $5,000
invested for 4 years at 6% compounded monthly is approximately $6,326.50.
Step-by-step explanation: Maturity Value = $5,000 * (1 +
(0.06 / 12)) (12 * 4)
Now let's solve this equation step by step:
1. Simplify the fraction inside the
parentheses: 0.06 / 12 = 0.005
2. Add 1 to the result: 1 + 0.005 =
1.005
Raise the result to the power of (12 * 4): 1.005(48)
Calculate the final result:
$5,000 * 1.005^(48)
Using a calculator, we find that 1.005 (48) is approximately 1.2653.