SOLUTION: Web invested 1750 in an account earning 13.5% interest compounded monthly for a 2 year period. What is the balance to the nearest dollar at the end of the 2 years

Algebra ->  Equations -> SOLUTION: Web invested 1750 in an account earning 13.5% interest compounded monthly for a 2 year period. What is the balance to the nearest dollar at the end of the 2 years       Log On


   

Question 1077167: Web invested 1750 in an account earning 13.5% interest compounded monthly for a 2 year period. What is the balance to the nearest dollar at the end of the 2 years
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
P=Po{1+.135/12}^24, the 24 being the number of compoundings
The parentheses is 1.308, but don't round until after multiplying by P0=$1750
=$2288.98
Check by comparing it to continuously compounding, which should be a little more.
Poe^(.135*2)=$2292.43