SOLUTION: You invest $1,300 in an account with an annual interest rate of 2.5%, compounded monthly. How much money is in the account after 5 years? Round your answer to the nearest whole num

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: You invest $1,300 in an account with an annual interest rate of 2.5%, compounded monthly. How much money is in the account after 5 years? Round your answer to the nearest whole num      Log On


   

Question 736934: You invest $1,300 in an account with an annual interest rate of 2.5%, compounded monthly. How much money is in the account after 5 years? Round your answer to the nearest whole number.
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
A = P(1+r/n)^(n*t)

A = 1300(1+0.025/12)^(12*5)

A = 1300(1+0.002083333)^(60)

A = 1300(1.002083333)^(60)

A = 1300(1.133001099)

A = 1472.9014287

A = 1472.90

So there will be $1,472.90 in the account in 5 years.