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37 votes
37 votes
$400 is invested for 5 years at 12% p.a. compounded monthly.

find the amount of compound interest earned

User Pluke
by
3.0k points

1 Answer

23 votes
23 votes

Answer:

$ 326.68 interest earned at 5 yrs

Explanation:

Period = 1 month Periods = 5 x 12 = 60 periodic interest = .12/12 = .01

400 ( 1 +.01)^60 = 726.68 value in account after 5 years

subtract the original deposit to find the interest earned

726.68 - 400 = 326.68

User Chris Magnussen
by
3.3k points
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