Use the formula for computing future value using compound interest to determine the value of an...

Use the formula for computing future value using compound interest to determine the value of an account at the end of 5 years if a principal amount of $5,000 is deposited in an account at an annual interest rate of 3% and the interest is compounded monthly.

Expert Solution

FV = P * (1 + r/12)^12*n

= 5000 * (1 + 0.03/12)^12*5

= $ 5808.08 (ans)

milcah answered 1 year ago

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