SOLUTION: Determine the amount of an investment of $2500 if it is invested at in interest rate of 5.25% compounded monthly for 4 years?

Algebra ->  Finance -> SOLUTION: Determine the amount of an investment of $2500 if it is invested at in interest rate of 5.25% compounded monthly for 4 years?      Log On


   

Question 867182: Determine the amount of an investment of $2500 if it is invested at in interest rate of 5.25% compounded monthly for 4 years?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!


Hi

 In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

A = Accumulated Amount

P= principal = 

r= annual rate = .0525

n= periods per year = 12

t= years = 4

A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29

A%284%29=+2500%281.4375%29%5E%2848%29