SOLUTION: Milena deposited ​$6 comma 000 in a certificate of deposit​ (CD) account that pays 9​% annual​ interest, compounded monthly. How much will the balance of th

Algebra ->  Finance -> SOLUTION: Milena deposited ​$6 comma 000 in a certificate of deposit​ (CD) account that pays 9​% annual​ interest, compounded monthly. How much will the balance of th      Log On


   

Question 1126966: Milena deposited ​$6 comma 000 in a certificate of deposit​ (CD) account that pays 9​% annual​ interest, compounded monthly. How much will the balance of the account be in 6 ​years?


Answer by ikleyn(52756) About Me  (Show Source):
You can put this solution on YOUR website!
.

f = p * (1 + r) ^ n

f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.

in your problem:

p = 6000
f = what you want to find
r = 0.09/12 per month
n = 12*6 = 72 months

formula becomes f = 6000 * (1 + 0.09/12) ^ 72

Calculate f to get f = 10275.32.

Answer. $10275.32.