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At the time of her grandsons birthday grandmother deposits $9000 in an account that pays 5.5% compounded monthly what will be the value of the account at the Charles 21st birthday assuming that no other deposits or withdrawals are made during this period

At the time of her grandsons birthday grandmother deposits $9000 in an account that-example-1
User Kennia
by
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1 Answer

1 vote

Given:

Amount = $9000

Rate=5.5%

time =21

Formula:


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

Where,


\begin{gathered} p=9000 \\ r=(5.5)/(100) \\ r=0.055 \\ n=12 \\ t=21 \end{gathered}


\begin{gathered} A(t)=P(1+(r)/(n))^(nt) \\ A(21)=9000(1+(0.055)/(12))^(12*21) \\ A(21)=9000(1.00458)^(12*21) \\ A(21)=9000(1.00458)^(252) \\ A(21)=9000*3.165658 \\ A(21)=28490.92 \end{gathered}

so amount after 21 year is $28490.92

User Crolle
by
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