SOLUTION: another question for y'all suppose you invest $5000 into an interest-bearing account which compounds at 3% every month. How much will you have in your account at the end of 7 y

Question 237554: another question for y'all
suppose you invest $5000 into an interest-bearing account which compounds at 3% every month. How much will you have in your account at the end of 7 years? I have to use this formula>> S=P(1+r/n)nt-th power. please help and need back asap and if you could show the steps it would be greatly appreciated
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the compound interest formula

Plug in p=5000, r=0.03 (this is the decimal form of 3% interest), n=12, and t=7

Divide 0.03 by 12 to get 0.0025

Multiply the exponents 12 and 7 to get 84

Add 1 and 0.0025 to get 1.0025

Raise 1.0025 to the 84 th power to get 1.23335480054924

Multiply 5000 and 1.23335480054924 to get 6166.77400274618

So if you invest $5,000 at an interest rate of 3%, which is compounded 12 times a year for 7 years, the return is about $6,166.77 (which is rounded to the nearest cent)
RELATED QUESTIONS
Suppose you invest $140 at the end of each month for 5 years into an account earning 9%... (answered by ikleyn,Theo)

Suppose you invest $130 at the end of each month for 4 years into an account earning 7%... (answered by math_tutor2020)

1)Suppose you invest $150 at the end of each month for 6 years into an account earning 6% (answered by ikleyn)

Suppose you invest $600 into an account that compounds continuously at a rate of 1.75%.... (answered by Theo)

Suppose you invest $150 a month for 5 years into an account earning 8% compounded... (answered by Theo)

Suppose you invest $150 a month for 3 years into an account earning 7% compounded... (answered by Boreal)

Suppose you invest $120 a month for 3 years into an account earning 8% compounded... (answered by ikleyn)

Latasha plans to invest $2500 in an account that compounds quarterly, hoping to at least... (answered by Boreal)

Use formulas: S = P*(1+r/12^12t-1) / (r/12) S stands for the accumulated savings when... (answered by Paul)