Calculate the accumulated value of $1000 at the end of 5 years using nominal interest rate...

Question

Question

Calculate the accumulated value of $1000 at the end of 5 years using nominal interest rate of 6% compounded monthly

Answer 1

Answer #1

Interest per month will be (6%÷12) = 0.5%.

Number of months in 5 years is 60.

Accumulated value = Present value x (1+) Accumulated value = 1,000 x (1 +0.005) 60 Accumulated value = 1,000 x 1.348850153

Accumulated value = 1,348.85

Answer 2

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