SOLUTION: You deposit $12,000 dollars in an account that pays 5.5% interest compounded monthly. What would your balance be after two years?

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Question 1013070: You deposit $12,000 dollars in an account that pays 5.5% interest compounded monthly. What would your balance be after two years?
Answer by fractalier(6550) About Me  (Show Source):
You can put this solution on YOUR website!
If your money is compounded monthly, you can calculate it using the formula:
A%28t%29+=+P%281+%2B+%28r%2Fn%29%29%5Ent
A%282%29+=+12000%281+%2B+.055%2F12%29%5E%2812%2A2%29
A%282%29+=+12000%281.004583%29%5E24
which yields a balance of
$13391.86