Answer: $40,365.50
Explanation:
For this question we can use the Compound interest formula which is,
A = P(1 +r/n)^nt
Where,
A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed
Using the above formula we can plug in the figures and get,
Remember that since it is compounded monthly, "n" will be 12 to represent 12 months in a year.
A = 30,000 ( 1 + (0.06/12) ) ^ 12(5)
= 40,465.5045765
= $40,465.50
The Future Value is $40,365.50
