Question

Suppose that $14,000 is invested in a savings account paying 5.2% interest per year.

(a) Write the formula for the amount A in the account after t years if interest is compounded monthly.

Answer 1

A=P(1+R%)^n
P=$14000, R=5.2%, t=t/12
hence
A=14000(1+5.2/100)^(t/12)
=14000(1.052)^t/12