Question

You deposit $3,500 into an account which yields 4% interest. If the account is compounded monthly, how much would you have in 6 years?

Answer 1

Answer: $4,447.49

Explanation:

(1) 3500 (1 + 0.04 / 12) ^ 12 x 6

(2) A = 3500 x 1.003333^72

(3) A = 3500 x 1.270711

(4) A = 4,447.49