SOLUTION: I can't figure this question out! I think the formula is A= p (r +1) t, but I don't really know how to do it! You've invested $5,000 in an account that earns .5% compounded per

Question 164145: I can't figure this question out! I think the formula is A= p (r +1) t, but I don't really know how to do it!
You've invested $5,000 in an account that earns .5% compounded per onth. The formula for compound interest gives us the equation a= 5,000(1.005)^n, where n is the number of compound periods and a is the amount of money in the account after n periods. Assuming there were no deposits or withdrawals, approximately how much money will be in the account after 10 years?
So far I have... a= 5,000(1.005)^120 (120 being the # of months in 10 years)
Is there an easier way to figure this out rather than try to multiply the number by itself 120 times?!
Help!!
Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!

THE ONLY EASY WAY IS TO USE A CALCULATOR.
P(1+R/M)^MT
5000(1+.05/12)^12*10
5000(1+.004167)^120
5000(1.004167)^120
5000*1.647=8235.05
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