Respuesta :
Answer:
Hence By End of the year with monthly compounded interest it will have 5522.56 $
Step-by-step explanation:
Given:
Initial investment =5.280 $
Rate of interest =4.2%
To Find:
Amount after the 1 year
Solution:
As the investment follows the rule for compound interest as ,
A=P(1+R)^t
Here A=amount after t years
R= rate of interest , P= principal amount t is time period
So given is monthly compounded interest
so t will divided into 12 parts as there 12 months in one year.
P=5280 $ , R=4.2/12 % , t=12
[tex]A=5280(1+0.045/12)^(12)[/tex]
[tex]A=5280(1.00375)[/tex]^12
[tex]A=5280(1.046)[/tex]
A=5522.56 $
Answer:
$7384.18
Step-by-step explanation:
5,280 (1 + .042 / 12)^ 12(8)
