investing $12,000 in a savings account at 6% annual interest compounded monthly will result in approximately…

investing $12,000 in a savings account at 6% annual interest compounded monthly will result in approximately how much money after 5 years? use the formula: $a = p(1+\frac{r}{m})^{mt}$\n$15,600.00\n$16,058.71\n$16,186.20\n$13,061.84

investing $12,000 in a savings account at 6% annual interest compounded monthly will result in approximately how much money after 5 years? use the formula: $a = p(1+\frac{r}{m})^{mt}$\n$15,600.00\n$16,058.71\n$16,186.20\n$13,061.84

Answer

Explanation:

Step1: Identify values

$P = 12000$, $r=0.06$, $m = 12$, $t = 5$

Step2: Substitute into formula

$A=12000\left(1+\frac{0.06}{12}\right)^{12\times5}$

Step3: Calculate inside parentheses

$1+\frac{0.06}{12}=1 + 0.005=1.005$

Step4: Calculate exponent

$12\times5 = 60$

Step5: Calculate power

$1.005^{60}\approx1.3488501525$

Step6: Multiply by principal

$A=12000\times1.3488501525\approx16186.20$

Answer:

$16,186.20$