Use the compound interest formula to find the future value w

Use the compound interest formula to find the future value when a principal of $4000 is invested at 3% compounded monthly for 5 years. Leave your answer in exact form, and do not attempt to evaluate the expression.

Solution

P = $4000

r = 3% = 0.03

t = 5 yrs

n = 12

Then A = P(1 + r/n)^nt = 4000(1 + 0.03/12)^12*5 = 4000*(1.0025)^60 = $4646.47