Question

How much would $150 invested at 8% interest compounded monthly be worth after 13 years? Round your answer to the nearest cent. here's the equation: A(t)=P(1+r/n)^nt

Answer 1

Using that equation, our P = 150, r = .08, t = 13, and n = 12 (because there are 12 months in a year). Filling in accordingly, we have
`A(t)=150(1+ (.08)/(12))^((12)(13))`. Simplifying a bit we have
`A(t)=150(1+.00666666)^(156)`. Doing the addition inside the parenthesis and then raising that number to the 156th power, we have
`A(t)=150(2.819469238)`. Multiply those and get A(t) = $422.92