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Susan decides to deposit $40,000 into a bank that offers 4.75% annual interest which is then...

Susan decides to deposit $40,000 into a bank that offers 4.75% annual interest which is then converted to a monthly compounding. After six years, what will Susan’s account total?

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Expert Solution

Value of account after 6 years = Amount Deposited * [1 + r]n

= $40,000 * [1 + (0.0475/12)](6*12)

= $40,000 * 1.3290 = $53,160.57

jeff jeffy answered 2 years ago
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