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Question 1: What will be the maturity value of $5,000 invested for 4 years at 6% compounded monthly?

1 Answer

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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.

User MyztikJenz
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