SOLUTION: Suppose you deposit $100 in a bank and receive 4% per year compound interest for 7 years, compounded monthly. Find the amount after 7 years. Round to the nearest dollar. Would the

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Question 850213: Suppose you deposit $100 in a bank and receive 4% per year compound interest for 7 years, compounded monthly. Find the amount after 7 years. Round to the nearest dollar.
Would the formula be be set up like
(100*.4*7)+100

Answer by checkley79(3341) About Me  (Show Source):
You can put this solution on YOUR website!
THE FORMULA IS:
P(1+I)^T
100(1+.04/12)^7*12
100(1.00333)^84
100*1.322=132.20 ANS.