Business: Aretirement account is opened with an initial deposit of $8,500 and earns 8.12% interest compounded monthly. what will the account be worth in 20 years?

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Aretirement account is opened with an initial

lilkari5

31.12.2021

Amount receive after 20 year = $42,922.2746

Explanation:

Given:

Principal(P) = $8,500

Interest compounded monthly(r) = 8.12% / 12 = 0.677% = 0.00677

Number of years(n) = 20 year = 20 × 12 = 240

Amount after 20 years = ?

Computation of Amount:

$Amount = P(1+r)^n\\\\Amount = 8,500(1+0.00677)^{240}\\\\Amount = 8,500(1.00677)^{240}\\\\Amount = 8,500\times 5.04967937\\\\Amount = 42,922.2746$

Amount receive after 20 year = $42,922.2746

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