SOLUTION: Use the formula A = P ( 1+r ) (nt) n A=P(1+r/n)^(n*t) to find the amount of money in an IRA accoun

Algebra ->  Finance -> SOLUTION: Use the formula A = P ( 1+r ) (nt) n A=P(1+r/n)^(n*t) to find the amount of money in an IRA accoun      Log On


   

Question 735864: Use the formula A = P ( 1+r ) (nt)
n
A=P(1+r/n)^(n*t)
to find the amount of money in an IRA
account after 48 years if $450 is
deposited into a savings account
at 4.75% interest per year but
compounded monthly, so n=12. This method is used by banks and
savings institutions.
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
A=450(1+0.0475/12)^12*48
A=450(1.003958)^576
A=450(9.731)
A=$4378.95