Question

The compound interest formula states that if dollars are invested at an annual interest rate of r, compounded n times per year, then A. theamount of money present after t years, is given by A = P(1 + 3)" 1 513,000 is invested at 7% compounded monthly, how much will thisInvestment be worth in 4 years? Round your answer to two decimal places.AnswerHow to enter your answer (opens in new window) 4 PointsKeypadKeyboard Shortcutssil>PrevNext

Answer 1

`\begin{gathered} p=13000 \\ R=7\text{ \%} \\ N=12 \\ T=4 \end{gathered}`

Formula

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

Now, Substitute into the Formula

`\begin{gathered} A=13000(1+(0.07)/(12))^(0.07*12) \\ \\ A=13063.67034 \end{gathered}`

The final answer

`\text{ \$}13063.67`