Question

how much would $100 invested at 6% interest compounded monthly be worth after 20 years? Round your answer to the nearest cent a(t)=p(1+r/n)^nt

Answer 1

Amount after 12 years is $205.42

Explanation:

Fibal amount a is not given and to be found

Principal amount p = $100

Rate r = 6% ° 0.06

Years t = 20

Number if times computed n = 20*12

n = 240

a(t)=p(1+r/n)^nt

a = 100(1+0.06/240)^(240*12)

a = 100(1+0.00025)^(2880)

a= 100(1.00025)^2880

a= 100(2.054248)

a= 205.4248

To the nearest cent

a =$ 205.42

Amount after 12 years is $205.42