Problema Solution
To determine the compound amount of an investment of $10,000 with an interest rate of 6% compounded monthly after 4 years requires you to use a table factor that goes beyond the Compound Interest Table. Calculate the new table factor for this investment.
Answer provided by our tutors
To determine the compound amount of an investment of $10,000 with an interest rate of 6% compounded monthly after 4 years requires you to use a table factor that goes beyond the Compound Interest Table. Calculate the new table factor for this investment.
Solution:
A=10000*(1+6%/12)^48 = 12704.90
F= 12704.90/(10000*4)= 6.76%
So the new table factor for this investment is 6.76%