Answered

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A total of $54,000 is invested at an annual interest rate of 5.25%. Find the balance after 6 years if it is compounded monthly.

Sagot :

Using the compound interest formula:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

Where:

A = Amount

P = Principal = 54000

r = Interest rate = 5.25% = 0.0525

n = Number of times the interest is compounded per year = 12

t = Number of years = 6

So:

[tex]\begin{gathered} A=54000(1+\frac{0.0525}{12})^{12\cdot6} \\ A\approx73943.18 \end{gathered}[/tex]

Answer:

The balance is $73943.18

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