SOLUTION: Web invested 1750 in an account earning 13.5% interest compounded monthly for a 2 year period. What is the balance to the nearest dollar at the end of the 2 years

Question 1077167: Web invested 1750 in an account earning 13.5% interest compounded monthly for a 2 year period. What is the balance to the nearest dollar at the end of the 2 years

Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Po{1+.135/12}^24, the 24 being the number of compoundings
The parentheses is 1.308, but don't round until after multiplying by P0=$1750
=$2288.98
Check by comparing it to continuously compounding, which should be a little more.
Poe^(.135*2)=$2292.43
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