Problema Solution
4. 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
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%