Respuesta :
Answer:
Given the amount deposited in the bank = $20000
The interest rate earned = 1.5%
Step-by-step explanation:
Since we have given the present value, interest rate, and the time period of 5 years. Now we are required to find the amount after five years.
Amount after 5 Years = present value (1+ interest rate)^n
n = Number of compounding periods
n= 5×12 = 60
Interest rate = 1.5%/12
Now insert the values in the formula.
Amount after 5 Years = 20000 (1+ 1.5%/12)^60
Amount after 5 Years = $21,556.67
The amount in 5 years should be $21,556.67
Given that,
- Cooper is opening an online savings account to hold his $20,000 emergency fund.
- The online account pays 1.5% interest compounded monthly.
- And, there is 5 years.
Based on the above information, the calculation is as follows:
[tex]= \$20,000 \times (1+ 1.5\%\div 12)^{5\times 12}[/tex]
= $21,556.67
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