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28 March, 09:27

Brian deposited $4000 into an account with 5.4% interest, compounded monthly. Assuming that no withdrawals are made, how much will he have in the account after 6 years?

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  1. 28 March, 13:09
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    The future value of the amount deposited will be given by:

    FV=p (1+r/100n) ^nt

    where:

    FV=future value

    p=principle

    r=rate

    n=terms

    t=time

    thus substituting our values in the formula we get:

    FV=4000 (1+5.4/1200) ^ (6*12)

    FV=$5,526.57

    Answer: $5,526.57
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