Compound Interest, SMB-007

Shannon invests $25 000 in an account that earns interest at 6% per annum, compounded monthly.

What is the future value of Shannon's investment, to the nearest dollar, after 2 years? (2 marks)

--- 4 WORK AREA LINES (style=lined) ---

Show Answers Only

`$28\ 179`

Show Worked Solution

`text{Annual interest rate = 6.0% = 0.06}`

`text(Monthly interest rate) = \frac(0.06)(12) = 0.005`

`n = 2 xx 12 = 24`