Find The Maturity Value If 15,000 Is Deposited In A Bank At 2 % Compounded Monthly For 5 Years.

Find the maturity value if 15,000 is deposited in a bank at 2 % compounded monthly for 5 years.

 

Given:

P = 15000

r = 2.75% = 0.0275

n = 12 (since compounding is done monthly)

t = 6 years

Now,

A = 15000 \: (1 + \frac{0.0275}{12})^{12 \times 6}

\: \: \: \: \: = 15000 × 1.179170501

\: \: \: \: \: = 17687.56

Therefore Maturity Value (A) = P17687.56

Therefore Maturity Value (A) = P17687.56and Interest = A – P = 17687.56 – 15000 = P2687.56


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