What is the accumulated value of $5000 for 20 months at j₂ = 11% using the practical method? A)$5978.85 B)$5976.93 C)$5957.00 D)$5949.88

Question

Quizplus · Accepted Answer

Using the practical method, we can multiply the principal amount by the interest rate and the number of months, and then add that product divided by 10 to the principal amount.
Accumulated value = 5000 * 11/10 * 20/12 = 9,267
Rounding this value to the nearest cent gives an answer of $5,978.85, which is closest to option A.

What Is the Accumulated Value of $5000 for 20 Months