Question

Lucas deposits $4,000.00 for 6 years at 2% interest, compounded monthly. How much interest does he earn at the end of the 6 years? Round to the nearest cent. SHOW THE WORK PLEASE​

Answer 1

Explanation:

`A=P(1+r/c)^(ct)\\ \\ A=4000(1+.02/12)^(12(6))\\ \\ A\approx \$ 4509.54`

Answer 2

$12644.56

Explanation:

one year = 12 month

4,000 * (1.02)^(6*12) = 16644.5615

16644.5615-4000 = 12644.5615