SOLUTION: If a savings account of $⁢3300 is compounded monthly at 19.8% annual interest, how much will the account be worth in 56 months? Round your answer to the nearest cent. Note:

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Question 1124815: If a savings account of $⁢3300 is compounded monthly at 19.8% annual interest, how much will the account be worth in 56 months? Round your answer to the nearest cent. Note: 360 days in a year and 30 days in a month.
Thank you in advance.
Found 2 solutions by ikleyn, Theo:
Answer by ikleyn(53937) About Me  (Show Source):
You can put this solution on YOUR website!
.
FV = 3300%2A%281%2B0.198%2F12%29%5E56 = 8251.40 dollars.


Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
f = p * (1 + r) ^ n

f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.

in your problem:

p = 3300
f = what you want to find
r = 19.8% / 12 / 100 = .0165 per month
n = 56 months

formula becomes f = 3300 * (1 + .0165) ^ 56

solve for f to get f = 8251.395168.

round to nearest cent to get 8251.40.