1 2 points A deposit of 5000 earns 8 annual interest Find th

(1) (2 points) A deposit of $5000 earns 8% annual interest. Find the amount in the account at the end of 6 years if the interest is compounded monthly.

Solution

1. Principal =$5000

rate of interest=8%=.08

time,t=6 years

n=12

A=P(1+r/n)^{n t}

A=5000(1 + .08/12)^12*6= 5000(12.08/12)⁷²= $8067.51