Question

5,000 is invested for 14 years with an apr of 5% and monthly compounding

Answer 1

$10054.69

Explanation:

If the interest rate is 5% APR and monthly compounded, then the monthly interest rate is
`(5)/(12) = 0.4167\%`.

Now, if the sum is invested for 14 years with a monthly compound, then the principal is compounded for (14 × 12) = 168 times.

Now, using the formula of compound interest, the principal of $5000 will give the sum of

`5000(1 + (0.4167)/(100))^(168) = 10054.69` dollars. (Answer)