SOLUTION: Suppose $500 is invested at a rate of 11% per year compounded monthly. (Round your answers to the nearest cent.) (a) Find the principal after 1 month. (b) Find the principal af

Question 1147954: Suppose $500 is invested at a rate of 11% per year compounded monthly. (Round your answers to the nearest cent.)
(a) Find the principal after 1 month.
(b) Find the principal after 6 months.
(c) Find the principal after 1 year.
(d) Find the principal after 20 years.
Answer by ikleyn(52803) (Show Source): You can put this solution on YOUR website!
.


For your problem, the general formula is

    Future value = ,

where "n" is the number of months.



For example,  for 1 month  (n= 1)

    Future value =  = 504.58 dollars.



Next, for 6 months

    Future value =  = 528.14 dollars.



Do the rest by the same way.

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