Question

A principal of ​$6000 is invested in an account paying an annual rate of 6​%. Find the amount in the account after 6 years if the account is compounded​ semiannually, quarterly, and monthly.

Answer 1

Semianually

`6000\left(1+(0.06)/(2) \right)^((2)(6)) \approx \$8554.57`

Quarterly

`6000\left(1+(0.06)/(4) \right)^((4)(6)) \approx \$8577.02`

Monthly

`6000\left(1+(0.06)/(12) \right)^((6)(12)) \approx \$8592.27`