Problema Solution
11,000 invested for 6 years at 3% compounded monthly
Answer provided by our tutors
Let
P = $11,000 the principal invested
r = 0.03 or 3% annual interest rate
t = 6 years
n = 12*t = 12*6 = 72 compounding periods (the account is compounded monthly)
A = future value
A = P(1 + r/12)^n
A = 11000(1 + 0.03/12)^72
........
........
A = $13,166.43
In 6 years there will be $13,166.43 on the account.