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Answer: $ 123,859.75
Step-by-step explanation:
you will want an initial investment of $ 14,000.00
to attain a future value of $ 123,859.75
at an interest rate of 5%
with monthly contributions of $ 500.00
for an investment period of 12 years
Answer:
A=$25,141.99
Step-by-step explanation:
Compound interest formula is so:
A = [tex]P(1+\frac{r}{n} )^{nt}[/tex]
A = Amount
P = Principal
r = interest rate in decimal form
n = number of times interest is compounded per t
t = time
First we identify our variables and what we are solving for
We are solving for A, so no rearrangement is necessary
[tex]A=14000(1+\frac{0.05}{1})^{(1)(12)}[/tex]
Simplify
[tex]A=14000(1+{0.05})^{12}[/tex]
[tex]A=14000(1.05})^{12}\\[/tex]
for a more accurate answer round at the end
[tex]A=14000(1.796)\\[/tex]
A=$25,141.99