SOLUTION: You invest $1500 at an interest rate of 8% per year. Find the amount after 3 years if interest is compounded monthly.

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Question 1157553: You invest $1500 at an interest rate of 8% per year. Find the amount after
3 years if interest is compounded monthly.
Found 2 solutions by Alan3354, josmiceli:
Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
You invest $1500 at an interest rate of 8% per year. Find the amount after
3 years if interest is compounded monthly.
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8%/yr = (2/3)% per month
3 years = 36 months

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+A+=+P%2A%28+1+%2B+r%2Fn+%29%5E%28+n%2At+%29+
+P+=+1500+
+r+=+.08+
+n+=+12+
+t+=+3+
+A+=+1500%2A%28+1+%2B+.08%2F12+%29%5E%28+12%2A3+%29+
+A+=+1500%2A%28+1+%2B+.00667+%29%5E36+
+A+=+1500%2A1.00667%5E36+
+A+=+1500%2A1.27024+
+A+=+1905.36+
$1,905.36
--------------
check:
+A+=+1500%2A1.00667%5E36+
+19508.36+=+1500%2A1.00667%5E36+
+1.27023+=+1.00667%5E36+
+1.27023+=+1.27025+
Error due to rounding off
OK