You deposit $6000 in an account earning 3% interest compounded monthly. How much will you have in the account in 15 years?
Answer pls
To calculate the future value of the deposit with compound interest, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the deposit
P = the initial deposit amount ($6000)
r = the annual interest rate (3% or 0.03)
n = the number of times interest is compounded per year (monthly, so n = 12)
t = the number of years (15)
Plugging in the values, we have:
A = 6000(1 + 0.03/12)^(12*15)
A = 6000(1 + 0.0025)^(180)
A = 6000(1.0025)^180
Calculating this expression, we find:
A ≈ 6000(1.5563)
A ≈ $9,337.80
Therefore, after 15 years, the account will have approximately $9,337.80.