Question

You deposit $4000 in an account earning 5% interest compounded monthly. How much will you have in the account in 5 years?

Use n=12 for monthly compounding,n=4 for quarterly compounding,n=2 for semiannual compounding, and n=1 for annual compounding.)

Answer 1

4000 * [1 + (.05 / 12)]^(5 * 12)

Answer 2

200