Question

Gianna invested $47,000 in an account paying an interest rate of 6.9% compounded monthly. Assuming no deposits or withdrawals are made, how much money, to the nearest hundred dollars, would be in the account after 19 years?

Answer 1

Using the equation A=P(1+(r/n))^nt.

n=monthly, so it's 12.

t=19 years

r=6.9% as a decimal is .069

P=47,000

.069/12=.00575

.00575+1=1.00575

nt=12*19=228

1.00575^228=3.695

3.695*47000=$173,711

Answer: $173,711