Question

Suppose you invest $4,600 into a savings account with a 8.25% annual interest rate

that compounds interest monthly. Use the TVM solver on your calculator to find the
future value of the account after ten years.

NEED ANSWER ASAP

Answer 1

$10,467.06

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

here

rate of interest = 8.25% ÷ 12 = 0.6875%

And, the number of years is = 12 × 10 = 120

So, the future value is

= $4,600 × (1 + 0.6875%)^120

= $4,600 × 2.275448086

= $10,467.06