Answer:
Amount receive after 20 year = $42,922.2746
Explanation:
Given:
Principal(P) = $8,500
Interest compounded monthly(r) = 8.12% / 12 = 0.677% = 0.00677
Number of years(n) = 20 year = 20 × 12 = 240
Amount after 20 years = ?
Computation of Amount:
\(Amount = P(1+r)^n\\\\Amount = 8,500(1+0.00677)^{240}\\\\Amount = 8,500(1.00677)^{240}\\\\Amount = 8,500\times 5.04967937\\\\Amount = 42,922.2746\)
Amount receive after 20 year = $42,922.2746
