Question 1201069
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You invest $ 5000 in Acme Inc. on January 1, 2000. Your investment returns 2.75 % compounded monthly. 
How much money will you have on June 30, 2006?
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        Calculations and the answer in the post by @mananth are incorrect.

        I came to make the job accurately as it should be done.



<pre>
r = R/100

r = 2.75/100

r = 0.0275 rate per year

Amount A = {{{P(1 + r/n)^N}}},  N is the number of compounding (= the same as the number of months N = 78).

A = {{{5000.00*(1 + 0.0275/12)^78}}}

A = $5977.39.    <U>ANSWER</U>
</pre>

Solved correctly.


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These typical financial problems assume a PRECISE solution correct to one single cent.


It is a standard for banking practice, and it is a standard for solving school/college exercises
in Financial Math, because the answer of an exercise must match to the precise standard value.


To get a precise answer, NEVER make intermediate rounding, since it inevitably leads to loosing precision.


To get a precise answer, use specialized financial calculators, or specialized online calculators, 
or Excel spreadsheets.