Problema Solution
if you deposit $400 into an account that pays 3.6% interest, compounded monthly, then how much would you have at the end of 6 years?
Answer provided by our tutors
Money at the end of 6 years will be,
Fv = PV* (1+i/m)^n*m
= 400* (1+ 0.0360/12)^6*12
= 400* ( 1.003)^6*12
= 400* 1.240701
= $ 496.2805