SOLUTION: If P dollars is invested in a bank that coumpounds interest n times a year, the value of the account after t years is found evaluating P(1 + i/n)^nt where i is the annual interest

Question 130283: If P dollars is invested in a bank that coumpounds interest n times a year, the value of the account after t years is found evaluating P(1 + i/n)^nt where i is the annual interest rate (as a decimal number). Find the value of an account for which P=$1000, i=5%, n=2 and t=3 years.
Answer by checkley71(8403) (Show Source): You can put this solution on YOUR website!
P(1+i/n)^nt
1000(1+.05/2)^2*3
1000(1+.025)^6
1000(1.025)^6
1000*1.15969=$1,159.69 AMOUNT OF THE INVESTMENT.

RELATED QUESTIONS
please help me solve this equation. Suppose you deposit a principal amount of (p)... (answered by rfer)

Suppose you deposit a principal amount of p dollars in abank account that pays compound... (answered by unlockmath)

Hello, I would like someone to check if I did this correctly please! Given: Bank A is... (answered by richwmiller)

The formula A = 𝑃 (1 +𝑟𝑛)𝑛𝑡 is used to determine (answered by Alan3354)

If 5000 dollars is invested in a bank account at an interest rate of 4 per cent per year, (answered by stanbon)

I have a problem solving this compound interest question. Question : If 7000 dollars (answered by Mathtut)

Interest Formulas If you invest $P, and you earn interest only on the amount you... (answered by mananth,Theo)

Please help me with these problems. Thanks and show all work 1. A bank features a... (answered by solver91311)

1.) A savings account in which people make regular payment amounts to save toward future... (answered by ikleyn)