SOLUTION: A financial advisor recommends that a client deposit $2600 into a fund that earns 7.5% annual interest compounded monthly. What will be the value of the investment after 7 years?

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: A financial advisor recommends that a client deposit $2600 into a fund that earns 7.5% annual interest compounded monthly. What will be the value of the investment after 7 years?       Log On


   

Question 1175588: A financial advisor recommends that a client deposit $2600 into a fund that earns 7.5% annual interest compounded monthly. What will be the value of the investment after 7 years? Round to the nearest cent.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi

 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29
A = Accumulated Amount
P= principal = $2600
r= annual rate = .075
n= periods per year = 12
t= years = 7
A%28t%29+=+2600%281%2B.075%2F12%29%5E%2884%29 = $4,388.02

Wish You the Best in your Studies.