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4. A savings account is started with $10,000. Calculate the
current value of the account in 5 years for both of the
following scenarios.

(a) Interest is earned at a rate of 2.3% and is compounded
monthly,

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Respuesta :

mhanifa

Answer:

  • $1217.50

Step-by-step explanation:

Given:

  • Principal P = $10000
  • Interest rate r = 2.3% = 0.023
  • Compound number n = 12
  • Time t = 5 years

Interest amount is:

  • I = P(1+ r/n)^(nt) - P
  • I = 10000(1 + 0.023/12)^60 - 10000 = $1217.50

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