To the nearest two decimal places, find the amount in a bank account after 5 years at 6% annual percentage rate compounded monthly if the money initially deposited was 15,000 .

Solution

To the nearest two decimal places, find the amount in a bank account after 5 years at 6% annual percentage rate compounded monthly if the money initially deposited was 15, 000 .

Solution

Amount : 20232.75

Solution steps

Translate the problem into an equation:

A = 15000 (1 + \frac{0.06}{12})^{12 \cdot 5}

15000 (1 + \frac{0.06}{12})^{12 \cdot 5} = 20232.75228 \dots

Round to the nearest hundredth:

20232.75

Amount : 20232.75

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