Question

The amount of $P invested for 5 years at 4%p.a. compound interest, payable monthly is?

Answer 1

Do you remember the formula for the compiund interest ?

Answer 2

no

Answer 3

oh I=p(1+r)^n

Answer 4

Interest = principle(1-rate)^number periods

that it?

Answer 5

monthly at 12 months in a year for 5 years, means 12*5 = 60 periods

Answer 6

so how does it link with the question, im still not sure

Answer 7

PV*(1-r)^n = FV

PV = Present Value
FV = Future Value
r = annual interest rate
n = number of periods

Answer 8

Here,
r = 0.04
n = 60 periods
PV = $P

Answer 9

so you have

$P * (1-0.04)^60 = Future Value

Answer 10

um isn't it 1+0.04

Answer 11

sorry, you are right, my mistake

$P * (1 + 0.04)^20 = Future Value

Answer 12

Is there more to the question?

Answer 13

no thanks

Answer 14

welcome