Question

Calculate the future value of an investment of $6130, after 9 months, earning 5.3% APR, compounded monthly, by compounding manually. Be sure to show your work, and to calculate the period interest before solving

Answer 1

5.3% APR is 5.3/12%=0.4417% monthly. Growth value=1.004417 per month.

After 1st month, Value is 6130×1.004417=$6157.07 interest: $27.07

2nd month: $6184.27 interest: $54.27 period interest: $27.20

3rd month: $6211.58 interest: $81.58 period interest: $27.31

4th month: $6239.02 interest: $109.02 period interest: $27.44

5th month: $6266.57 interest: $136.57 period interest: $27.55

6th month: $6294.25 interest: $164.25 period interest: $27.68

7th month: $6322.05 interest: $192.05 period interest: $27.80

8th month: $6349.97 interest: $219.97 period interest: $27.92

FV: $6378.02 interest: $248.02 period interest: $28.05