Answer to Question #273033 in Real Analysis for Danica

Question

2000for 5%years with interest rate 12% compounded montly

Answer 1

Solution;

Given;

P=2000

t=5

$j=\frac{0.12}{12}=0.01$

$n=5(12)=60$

m=12

i=0.12

Hence;

$A=P[\frac{1-(1+j)^{-n}}{j}]$

$A=2000[\frac{1-(1+0.01)^{-60}}{0.01}]$

$A=2000(44.9555)$

$A=89,910.08$