Question

If you deposit $8,500 in an account now, how much will be in the account at the end of 5 years? Use a nominal rate (monthly compounding) of 8.00%.

Answer 1

$12,663.69

Step-by-step explanation:

The formula for calculating future value :

FV = P (1 + r/m)^nm

FV = Future value

P = Present value

R = interest rate

N = number of years

M = number of compounding per year

$8,500 (1 + 0.08 / 12) ^60 = $12,663.69