SOLUTION: You invest $ 5000 in Acme Inc. on January 1, 2000. Your investment returns 2.75 % compounded monthly. How much money will you have on June 30, 2006?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: You invest $ 5000 in Acme Inc. on January 1, 2000. Your investment returns 2.75 % compounded monthly. How much money will you have on June 30, 2006?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1201069: You invest $ 5000 in Acme Inc. on January 1, 2000. Your investment returns 2.75 % compounded monthly. How much money will you have on June 30, 2006?
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!

r = R/100
r = 2.75/100
r = 0.0275 rate per year
Amount A = P(1 + r/n)nt
A = 5,000.00(1 + 0.0275/12)^((12)(6.5))
A = 5,000.00(1 + 0.0023)^(78)
A=$5981