A couple deposits 25,000 into an account earning 4% annual interest for 15 years. Calculate the future value of the investment if the interest is compounded monthly. Round your answer to the nearest cent.

Solución

A co u pl e d e p os i t s 25, 000 in t o an a cco u n t e a r nin g 4% ann u a l in t eres t f or 15 ye a rs . C a l c u l a t e t h e f u t u re v a l u e o f t h e in v es t m e n t i f t h e in t eres t i s co m p o u n d e d m o n t h l y . R o u n d yo u r an s w er t o t h e n e a res t ce n t .

Amount : 45507.54

Pasos de solución

Translate the problem into an equation:

A = 25000 (1 + \frac{0.04}{12})^{12 \cdot 15}

25000 (1 + \frac{0.04}{12})^{12 \cdot 15} = 45507.54068 \dots

Redondear al más cercano hundredth:

45507.54

Amount : 45507.54