SOLUTION: You deposit $6000 in an account earning 5% interest compounded monthly. How much will you have in the account in 15 years? $____

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Question 1201292: You deposit $6000 in an account earning 5% interest compounded monthly. How much will you have in the account in 15 years?
$____
Found 2 solutions by Alan3354, Theo:
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
You deposit $6000 in an account earning 5% interest compounded monthly. How much will you have in the account in 15 years?
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5% per year = 5/12 % per month.
15 years = 180 months.
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FV = PV*(1 + int)^t
FV = 6000*(1 + 0.05/12)^180
FV = $12,682.22

Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
6000 * (1 + .05/12) ^ (15 * 12) = 12,682.22, rounded to the nearest penny.
you divide the annual interest rate by 12 to get an interest rate per month.
you then multiply the number of years by 12 to get the number of months.
an interest rate of 5% per year is equivalent to interest rate of .05 per year.