Question

John invests $3000 at 4.75% compounded monthly. How much will his investment be worth in 5years? A=?​

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$3000\\ r=rate\to 4.75\%\to (4.75)/(100)\dotfill &0.0475\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly, thus twelve} \end{array}\dotfill &12\\ t=years\dotfill &5 \end{cases}`

`A=3000\left(1+(0.0475)/(12)\right)^(12\cdot 5)\implies A=3000\left( (4819)/(4800) \right)^(60)\implies A\approx 3802.44`