Question

You invest $25,000 into an account earning 7.8% interest compounded monthly. How much is inthe account after 14 years.

Answer 1

P = $25000

R = 7.8%

t = 14

Therefore,

`A=P(1+(r)/(n))^(nt)`
`\begin{gathered} A=25000(1+(0.078)/(12))^(12*14) \\ A=25000(1+0.0065)^(168) \\ A=25000(1.0065)^(168) \\ A=25000*2.96971593784 \\ A=\text{ \$}74242.898446 \\ A=\text{ \$}74242.898446 \\ A=\text{ \$}74,242.90 \end{gathered}`