Answer:
Explanation:
Given:
Principal, P = $27,000
Rate, r = 7% = 0.07
Time, t = 6 years
Number of time compounded per year, n = 12.
We obtain the future value using the formula:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]Substituting the given values, we have:
[tex]\begin{gathered} A=27000(1+\frac{0.07}{12})^{12\times6} \\ \\ =A=27000(1+\frac{0.07}{12})^{72} \\ \\ =41042.85 \end{gathered}[/tex]