SOLUTION: Find the future value and compound interest if �13500 is invested for 7 years at a rate of 15% per annum compounded monthly. How do you work this out? I have a maths exam tomorrow

Question 620147: Find the future value and compound interest if �13500 is invested for 7 years at a rate of 15% per annum compounded monthly.
How do you work this out? I have a maths exam tomorrow and nowhere explains how you do it :-(
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
Find the future value and compound interest if �13500 is invested for 7 years at a rate of 15% per annum compounded monthly.
**
compound interest formula: A=P(1+i)^n, P=initial investment, i=interest rate per period, A=amount after n periods.
For given problem:
P=�13500
period=month
i=.15/12=.0125
n=7*12=84
..
A=13500(1+.0125)^84
A=13500(1.0125)^84
A≈�38328
Future value=�38328
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