SOLUTION: Determine the amount of an investment if $100 is invested at an interest rate of 5% compounded monthly for 5 years. Round your answer to the nearest whole dollar.

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Question 761639: Determine the amount of an investment if $100 is invested at an interest rate of 5% compounded monthly for 5 years. Round your answer to the nearest whole dollar.
Answer by lwsshak3(11628) About Me  (Show Source):
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Determine the amount of an investment if $100 is invested at an interest rate of 5% compounded monthly for 5 years. Round your answer to the nearest whole dollar.
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compound interest formula: A=P(1+i)^n, P=initial investment, i=interest rate per period, n=number of periods, A=amount after n periods.
For given problem:
P=$100
i=.05/12
n=5*12=60
..
A=100(1+(.05/12)^60)
A=100(1.2834)≈$128