Question

Find the amount accumulated if 10000 is invested for 5 years at a rate of 5.9% compounded monthly

Answer 1

The interest is compounded 5^12 = 60 months

monthly interest = 5.9 / 12 = 0.4917 %

Amount after 5 years = 10,000(1 + 0.4917/100)^60

= 13,465.17