en

English

Español

Português

Français

Deutsch

Italiano

Русский

中文(简体)

한국어

日本語

Tiếng Việt

עברית

العربية

Popular Word Problems >

To the nearest two decimal places, find the amount in a bank account after 5 years at 6% annual percentage rate compounded monthly if the money initially deposited was 15,000 .

Solution

T o t h e n e a res t tw o d ec ima l pl a ces, f in d t h e am o u n t in a bank a cco u n t a f t er 5 ye a rs a t 6% ann u a l p erce n t a g e r a t e co m p o u n d e d m o n t h l y i f t h e m o n ey ini t ia ll y d e p os i t e d w a s 15, 000 .

Solution

Amount : 20232.75

Solution steps

Translate the problem into an equation:

A = 15000 (1 + \frac{0.06}{12})^{12 \cdot 5}

15000 (1 + \frac{0.06}{12})^{12 \cdot 5} = 20232.75228 \dots

Round to the nearest hundredth:

20232.75

Amount : 20232.75

Popular Examples

You deposit 5000 in an account earning 5% interest compounded monthly. How much will you have in the account in 5 years?Mackenzie puts 600.00 into an account to use for school expenses. The account earns 8% interest, compounded monthly. How much will be in the account after 7 years?An initial amount of 3200 is invested in an account at an interest rate of 3.5% per year, compounded continuously. Assuming that no withdrawals are made, find the amount in the account after three years.Maria borrowed 15,000. She repaid the loan in full at the end of 3 years with a lump sum of 18,500. What annual flat interest rate was she charged?the sum of two consecutive even integers is 174