SOLUTION: If P dollars is invested in a bank that coumpounds interest n times a year, the value of the account after t years is found evaluating P(1 + i/n)^nt where i is the annual interest
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: If P dollars is invested in a bank that coumpounds interest n times a year, the value of the account after t years is found evaluating P(1 + i/n)^nt where i is the annual interest
Log On
Question 130283: If P dollars is invested in a bank that coumpounds interest n times a year, the value of the account after t years is found evaluating P(1 + i/n)^nt where i is the annual interest rate (as a decimal number). Find the value of an account for which P=$1000, i=5%, n=2 and t=3 years. Answer by checkley71(8403) (Show Source):
You can put this solution on YOUR website! P(1+i/n)^nt
1000(1+.05/2)^2*3
1000(1+.025)^6
1000(1.025)^6
1000*1.15969=$1,159.69 AMOUNT OF THE INVESTMENT.
(