A retirement account is opened with an initial deposit of 6, 500 and earns 6.12% interest compounded monthly. What will the account be worth in 20 years?

Solution

Solution

Amount : 22036.31

Solution steps

Translate the problem into an equation:

A = 6500 (1 + \frac{0.0612}{12})^{12 \cdot 20}

6500 (1 + \frac{0.0612}{12})^{12 \cdot 20} = 22036.31002 \dots

Round to the nearest hundredth:

22036.31

Amount : 22036.31

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