What's the future value of $1,500 after 5 years if the appropriate interest rate is 6%,compounded monthly?
A)$1,922.11
B)$2,023.28
C)$2,124.44
D)$2,230.66

Question

Quizplus · Accepted Answer

The formula for future value with monthly compounding is:

FV = P(1 + r/12)^(n*12)

where FV is the future value, P is the initial investment, r is the interest rate (as a decimal), and n is the number of years.

Plugging in the given values, we get:

FV = 1500(1 + 0.06/12)^(5*12)
FV = $2,023.28

Therefore, the best choice is B) $2,023.28

What's the Future Value of $1,500 After 5 Years If