document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=215113>Question 215113</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Hi, my name is Christy. Our professor passes out sheets in our class and I was wondering if you could help me with one of the questions.\r<BR>\n" );
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document.write( "It is the formula {A = P ( 1+R/N) nt Compounding Interest.\r<BR>\n" );
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document.write( "My question is An investment earns 5.6% interest, compounded monthly. Find the balance in the account after 3 years if $6000 is invested initially.\r<BR>\n" );
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document.write( "I had A = $6000 ( 1 + 0.056/365) (1) (3) Is this right? I am lost on how to get the correct answer. I know the formula, but cannot figure out how to get the correct answer. Thanks. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #162547 by </B><A HREF=/tutors/aboutme.mpl?userid=Alan3354><B>Alan3354(69443)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Alan3354><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Alan3354><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=162547\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> An investment earns 5.6% interest, compounded monthly. Find the balance in the account after 3 years if $6000 is invested initially. <BR>\n" );
document.write( "I had A = $6000 ( 1 + 0.056/365) (1) (3) Is this right? I am lost on how to get the correct answer. I know the formula, but cannot figure out how to get the correct answer. Thanks.<BR>\n" );
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document.write( "Since it's compounded monthly for 3 years, that's 36 periods.<BR>\n" );
document.write( "The 5.6% is per year (it's not stated, but that's typical).<BR>\n" );
document.write( "Amt = $6000*(1 + 0.056/12)^36<BR>\n" );
document.write( "= $7094.85 </SPAN>\n" );
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