SOLUTION: I can't figure this question out! I think the formula is A= p (r +1) t, but I don't really know how to do it! You've invested $5,000 in an account that earns .5% compounded per

Algebra ->  Finance -> SOLUTION: I can't figure this question out! I think the formula is A= p (r +1) t, but I don't really know how to do it! You've invested $5,000 in an account that earns .5% compounded per      Log On


   

Question 164145: I can't figure this question out! I think the formula is A= p (r +1) t, but I don't really know how to do it!
You've invested $5,000 in an account that earns .5% compounded per onth. The formula for compound interest gives us the equation a= 5,000(1.005)^n, where n is the number of compound periods and a is the amount of money in the account after n periods. Assuming there were no deposits or withdrawals, approximately how much money will be in the account after 10 years?
So far I have... a= 5,000(1.005)^120 (120 being the # of months in 10 years)
Is there an easier way to figure this out rather than try to multiply the number by itself 120 times?!
Help!!
Answer by checkley77(12844) About Me  (Show Source):
You can put this solution on YOUR website!

THE ONLY EASY WAY IS TO USE A CALCULATOR.
P(1+R/M)^MT
5000(1+.05/12)^12*10
5000(1+.004167)^120
5000(1.004167)^120
5000*1.647=8235.05