Question

How much would $140 invested at 6% interest compounded monthly beworth after 15 years? Round your answer to the nearest cent.

Answer 1

Explanation

We are given the following:

`\begin{gathered} P=\text{ \$}140 \\ r=6\%=0.06 \\ t=15 \\ n=12 \end{gathered}`

We are required to determine the amount.

This is achieved thus:

We are given the formula below:

`A(t)=P(1+(r)/(n))^(nt)`

Therefore, we have:

`\begin{gathered} A(t)=140(1+(0.06)/(12))^(12\cdot15) \\ A(t)=140(1+(0.06)/(12))^(180) \\ A(t)=140(1.005)^(180) \\ A(t)=343.57309 \\ A(t)\approx\text{ \$}343.57 \end{gathered}`

Hence, the answer is:

`A(t)\approx\text{ \$}343.57`