Question

Suppose you deposit $7500 in a saving account that has as interest rate of 5.5.

If the interest is compounded monthly, what will the approximate balance of this saving account be in 3 years?

Answer 1

ok so im going give the equation to fiqure this along with the awnser,

the basic equation is A=P (1+R/N)N(T)

P= Principle (Starting amount)

R= Interest rate

N= Amount of time compounded PER YEAR

T= amount of years

Explanation:

so this would be A=$7500 (1+ 0.055/12)12(3)

which come to A=$7500 (1.178948602)

which comes to a total of $8842.11

hope this helps