SOLUTION: $1500 is invested at a rate of 3% compounded monthly. Write a compound interest function to model this situation. Then find the balance after 5 years.

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Question 606849: $1500 is invested at a rate of 3% compounded monthly. Write a compound interest function to model this situation. Then find the balance after 5 years.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

$1500 is invested at a rate of 3% compounded monthly.

find the balance after 5 years.

Note:  In General: A+=+P%281%2Br%2Fm%29%5Emt

A = Accumulated Amount

P= principal = $1500

r= annual rate = .03

m= periods per year = 12

t= years = 5

 A+=+1500%281%2B.03%2F12%29%5E60

  A+=+1500%281.0025%29%5E60

  A = $1742.43