SOLUTION: How much interest will be earned at the end of three years on a deposit of $15,000 in an account paying 3.25% interest compound monthly? My answer is: 15,000 (1 + 0.0325) (36)

Algebra ->  Formulas -> SOLUTION: How much interest will be earned at the end of three years on a deposit of $15,000 in an account paying 3.25% interest compound monthly? My answer is: 15,000 (1 + 0.0325) (36)       Log On


   

Question 133195This question is from textbook Fundamentals of Algebric Modeling
: How much interest will be earned at the end of three years on a deposit of $15,000 in an account paying 3.25% interest compound monthly?
My answer is: 15,000 (1 + 0.0325) (36)
15,000 (1 + 0.002708333)(36)
15,000 * 1.097499988 =
$16,462.50
 This question is from textbook Fundamentals of Algebric Modeling

Answer by checkley71(8403) About Me  (Show Source):
You can put this solution on YOUR website!
THE FORMULA IS:
P(1+R/N)^T*N WHERE R=ANNUAL RATE N=NUMBER OF PERIODS PER YEAR & T=NUMBER OF YEARS.
15,000(1+.0325/12)^3*12
15,000(1+.0027083)^36
15,000(1.0027083)^36
15,000*1.102264842
$16,533.97 ANSWER.