Problema Solution
If 9,000 is deposited in a bank account paying 6% compounded monthly, what amount will be in the account in four years?
Answer provided by our tutors
Amount = $9000
Rate of interest = 6%
Time = 4 years
Since the interest is compounded monthly
effective rate of interest = 6/12 = 0.5%
Effective time = 4*12 = 48 months
Amount after 4 years = Amount*(1+r/100)^time
=> Amount = 9000*(1+0.5/100)^48 = 11434.40