Find the amount that results from each. $50 invested at 6% compounded monthly after a period of 3 years ... ?

Question

Mathematics

Elizabeth Hawkins

9 June, 10:02

Find the amount that results from each. $50 invested at 6% compounded monthly after a period of 3 years ... ?

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Answers (1)

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Jillian Lawrence · Answer 1

The compound interest formula:

A = P · (1 + r/n) ^ (n t)

where: P = $50, r = 0.06, n = 12, n t = 12 · 3 = 36;

A = 50 · (1 + 0.06/12) ^ (36) =

= 50 · 1.005^ (36) = 59.834 ≈ $59.83