Fanny invests $12000 at 6% p.a. For 2 years. Find the amount she will obtain after 2 years if the interest is compounded monthly

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12,000*(1.005)^24 = ___

To find the amount Fanny will obtain after 2 years with monthly compounding interest, we can use the formula for compound interest:

A = P(1 + r/n)^(nt)

Where:
A = the final amount
P = the principal amount (initial investment)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years

In this case:
P = $12,000
r = 6% = 0.06 (in decimal form)
n = 12 (since interest is compounded monthly)
t = 2 years

Substituting these values into the formula, we get:

A = $12,000(1 + 0.06/12)^(12*2)

Now let's solve it step-by-step:

Step 1: Calculate (1 + 0.06/12)
= 1 + (0.06/12)
= 1.005

Step 2: Calculate (12*2)
= 24

Step 3: Calculate (1.005)^24
= 1.126825

Step 4: Multiply $12,000 by 1.126825
= $13,521.90

Therefore, the amount Fanny will obtain after 2 years with monthly compounding interest is $13,521.90.