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Meg invested $16,000 in a savings account . If the interest rate is 6% per year, how much will be in the account in 5 years for monthly compounding? Round your answer to two decimal places

Sagot :

[tex]~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$16000\\ r=rate\to 6\%\to \frac{6}{100}\dotfill &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &5 \end{cases} \\\\\\ \\\\ A=16000\left(1+\frac{0.06}{12}\right)^{12\cdot 5}\implies A=16000(1.005)^{60}\implies A\approx 21581.60[/tex]

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