Ask Question
5 May, 20:39

Assume that an individual puts $10,000 into a savings account that pays 3% interest, with interest being compounded monthly. The individual plans to withdraw the balance in 5 years to buy a car. If he does not make any further deposits over this period, how much will the individual be able to put towards his purchase?

+5
Answers (1)
  1. 5 May, 22:54
    0
    Answer: $11,620

    Explanation:

    A=P (1+r/n) ^nt

    A=$10,000 (1+0.03/12) ^12*5

    A=$10,000 (1+0.0025) ^60

    A=$10,000 (1.0025) ^60

    A=$10,000 (1.162)

    A=$11,620

    Note: A = Future value

    P = principal

    r=Interest rate

    n = no. of time Interest is compounded

    t = time money is invested.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume that an individual puts $10,000 into a savings account that pays 3% interest, with interest being compounded monthly. The individual ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers