SOLUTION: An investment account pays 4.2% interest compounded monthly. If you invest $2,500 in the account, how much money will you have after 15 years ?

Question 867789: An investment account pays 4.2% interest compounded monthly. If you invest $2,500 in the account, how much money will you have after 15 years ?
Answer by nerdybill(7384) (Show Source): You can put this solution on YOUR website!
An investment account pays 4.2% interest compounded monthly. If you invest $2,500 in the account, how much money will you have after 15 years ?
.
compound interest formula is
A = P(1 + r/n)^(nt)
where
P is 2500
r is .042
n is 12
t is 15
.
A = 2500(1 + .042/12)^(12*15)
A = 2500(1 + .042/12)^180
A = 2500(1.0035)^180
A = $4688.87

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