A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

anonymous

  • one year ago

You deposit $2000 in an account earning 3% interest compounded monthly. a. How much will you have in the account in 20 years? b. How much interest will you earn?

  • This Question is Closed
  1. SolomonZelman
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 2

    Hello! lets apply the same formula here again. except that this time you will have to tell me what to plug in for each of the variables (if you can, please do, if not, ask)/ \(\Large\color{blue}{ \displaystyle {\rm A}= {\rm P}\left(1+\frac{ {\rm r} }{ {\rm n} }\right)^{{\rm n} \times {\rm t}} }\)

  2. SolomonZelman
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 2

    I will tell you, that: "compounded monthly" means that it is compounded 12 times per year (so, n=12).

  3. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    A=2000(1+.3/12)12*20?

  4. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    3% = 0.03 and you need an exponent symbol, but otherwise that's right. A=2000(1+.03/12)^(12*20)

  5. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    then just subtract the original $2000 to get the interest

  6. SolomonZelman
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 2

    |dw:1437324170863:dw|

  7. SolomonZelman
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 2

    you can use a calculator for this...

  8. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    A. 3641.51 b. 1,641.51

  9. SolomonZelman
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 2

    have you found the value of the full investment amount after 20 years? if you have, then subtract the initial amount, subtract 2000 from this....

  10. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.