P = Po(1+r)^n.
P = $10,000.
Po = Initial deposit = ?.
r = 0.06/12 = 0.005 = Monthly % rate.
n = 12Comp./yr. * 5yrs. = 60 Compounding periods.
An account offers an APR of 6% compounded monthly. How much must you deposit today into this account in order to have $10,000 in five years.
1 answer
1 answer