Question

approximately how much money would Maddie have if he invested $1,200 at an interest rate of 5% for 7 years compounded monthly (12 times a year)?

Answer 1

ok

Formula

`\begin{gathered} A\text{ = P(1 + }(r)/(n))^(nt) \\ \end{gathered}`

P = 1200

r = 0.05

n = 12

t = 7

Substitution

`\text{ A = 1200(1 + }(0.05)/(12))^(12(7))`

Simplification

`\text{ A = 1200(1.0042)}^(84)`

Result

`\text{ A = 1706.39}`

Maddie will have $1706.39