SOLUTION: $1000 is deposited in a savings account that pays an annual rate of 6%, compounded monthly. Determine the value of the account in 2 1/2 years

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Question 707000: $1000 is deposited in a savings account that pays an annual rate of 6%, compounded monthly. Determine the value of the account in 2 1/2 years
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
$1000 is deposited in a savings account that pays an annual rate of 6%, compounded monthly. Determine the value of the account in 2 1/2 years
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A(t) = P(1+(r/n))^(nt)
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A(2 1/2) = 1000(1 + (0.06/12))^(12(5/2))
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A(2 1/2) = 1000(1.05)^30 = $1161.40
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Cheers,
Stan H.