Determine the amount of an investment if $2000 is invested at an interest rate of 7.2% compounded monthly for two years

Guest Feb 14, 2017

#2**0 **

FV = PV (1+i)^n

i = periodic interest rate (monthly) = 7.2/12 =. 6%=.006 n= periods(months) = 2 x 12 = 24

FV=2000(1+.006)^24 = $ 2308.77

ElectricPavlov
Feb 14, 2017

#3**0 **

FV = PV[1 + R]^N

FV =2,000 x [1 + 0.072/12]^2*12

FV =2,000 x [1.006]^24

FV =2,000 x 1.154387292....

FV **=$2,308.77**

Guest Feb 14, 2017