Question

You want to deposit $12,000 in a bank at an interest rate of 8 percent per year. What is the future value of this money after five years?

Answer 1

Is the interest compounded continuously or some other way?

Answer 2

what

Answer 3

What formula are you supposed to use to compute the future value of the money?

Answer 4

oh ok

Answer 5

Call a i deposit on a monthly
x is the interest rate

n is the number of months post

we have

After January, the amount of

a + ax = a (x + 1)
fra
In early February:
a×(x+1)+a=a×(x+1+1)=(ax)[(1+x)2−1]


After February:
(ax)[(1+x)2−1]+(ax)[(1+x)2−1]x=(ax)[(1+x)2−1]x=(ax)[(1+x)2−1]((x+1))





......

After n months, the amount of principal and interest are:
(ax)(x+1)[(1+x)n−1]




Applying the formula, instead of on and