Question 274536
annual interest rate = 5%/100% = .05


monthly interest rate = .05/12 = .004166667


number of time periods = 28 years * 12 compounding periods per year = 336


your formula is:


f = p * (1+i)^n where:


f = future value
p = present amount
i = interest rate per time period (months)
n = number of time periods (months)


this formula becomes:


f = 5000 * (1+(.05/12))^(28*12) which equals:


f = 5000 * (1.004166666666)^(336) and your answer is:


f = $20,217.11097