Question

4. Anna deposited ₱8,000 at the beginning of each month, for 3 years, at her credit union. If the interest rate was 13% compounded monthly, calculate the future value of Anna’s account.

Answer 1

In this case, we'll have to carry out several steps to find the solution.

Step 01:

Data:

principal = 8000

time = 3 years

rate = 13% = 0.13

Step 02:

Compound interest:

A = future value

n = 12 (compounded monthly)

A = P (1 + r/n) ^ nt

`A\text{ = }8000\cdot(1+(0.13)/(12))^(12\cdot3)=8000\cdot(1.0108)^(36)`

A = 11790.95

The answer is:

11790.95