If $15,000 is invested at an interest rate of 10% per year, compounded monthly, find the value of the investment after the given number of years. (Round your answers to the nearest cent.)
a. 6 years
b. 12 years
c. 18 years
2 answers
I saw it would be c 18 years
What are you talking about?
15,000 (1 + 0.10/12)^12n
for 6 years
15,000(1.008333)^72 = 15,000*1.8176
= $ 27,263.91
for 12 years
15,000 (1.008333)^144 = $49,554.73 etc
15,000 (1 + 0.10/12)^12n
for 6 years
15,000(1.008333)^72 = 15,000*1.8176
= $ 27,263.91
for 12 years
15,000 (1.008333)^144 = $49,554.73 etc
1 answer