Marcus will receive $14869.38 Â at the end of the 14 years
Step-by-step explanation:
The rule of the future value of the compound interest is:
[tex]FV=P(1+\frac{r}{n})^{nt}[/tex], where
1. P is the invested money
2. r is the rate of interest in decimal
3. n is the period of compound interest
4. t is the time
Marcus receives an inheritance of 6,000 he decides to invest the
money in a 14-year certificate of deposit that pays 6.5% interest
compounded monthly
We need to find how much money Marcus will receive at the end of
the 14 years
∵ P = $6000
∵ r = 6.5% = 6.5/100 = 0.065
∵ n = 12 ⇒ compounded monthly
∵ t = 14
Substitute these values in the rule above
∴ [tex]FV=6000(1+\frac{0.065}{12})^{(12)(14)}[/tex]
∴ FV = $14869.38
Marcus will receive $14869.38 Â at the end of the 14 years
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