Math

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suppose that \$5000 is invested in an account with APR of 12% compounded monthly. find the future value of the account in 5 years.

• Math -

New Value of account= \$5000*(1+12/100)^5
= \$8811.7

• Math -

That is the amount compounded annually.
Compounded monthly you get

5000(1+.12/12)^(12*5) = 9083.43

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