Question

Yes invests $1500 that compounds interest monthly with a 4.5% rate. How much money will he have after the 12 years?

Answer 1

FV= $2,571.41

Explanation:

Giving the following information:

Initial investment (PV)= $1,500

Interest rate (i)= 0.045/12= 0.00375

Number of periods (n)= 12*12= 144 months

To calculate the future value, we need to use the following formula:

FV= PV*(1 + i)^n

FV= 1,500*(1.00375^144)

FV= $2,571.41