8000 are invested in a bank account at an interest rate of 6 percent per year. Find the amount in the bank after 12 years if interest is compounded monthly.

Solution

Solution

Amount : 16406.01

Solution steps

Translate the problem into an equation:

A = 8000 (1 + \frac{0.06}{12})^{12 \cdot 12}

8000 (1 + \frac{0.06}{12})^{12 \cdot 12} = 16406.00652 \dots

Round to the nearest hundredth:

16406.01

Amount : 16406.01

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