SOLUTION: If $7000 is invested at an interest rate of 3.75% per year, find the amount (to the nearest cents) of the investment at the end of 5 years compounding monthly.

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Question 1155521: If $7000 is invested at an interest rate of 3.75% per year, find the amount (to the nearest cents) of the investment at the end of 5 years compounding monthly.

Found 2 solutions by josgarithmetic, ikleyn:
Answer by josgarithmetic(39617) About Me  (Show Source):
You can put this solution on YOUR website!
MONTHLY interest rate is 0.0375%2F12=0.003125.

QUANTITY of compounding periods is 5%2A12=60.

The ending balance, 7000%2A1.003125%5E60dollars.

Answer by ikleyn(52786) About Me  (Show Source):
You can put this solution on YOUR website!
.

It is  7000%2A%281%2B0.0375%2F12%29%5E%285%2A12%29 = 8441.14 dollars.    ANSWER

For all details and explanations, look into these two lessons
    - Compound interest percentage problems
    - Problems on discretely compound accounts
in this site, and learn the subject from there.


After reading these lessons, you will tackle such problems on your own without asking for help from outside.

Also,  you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lessons are the part of this online textbook under the topic "Logarithms".


Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.


Happy learning (!)