gibran Posted June 24, 2008 Share Posted June 24, 2008 If $1000 is invested in a certain account at the annual rate 7%, monthly compounded, what is the total amount of the investment at the end of t years? Don't have the answer options for this but the OA is :1000*(1+0.07/12)^(12t) Quote Link to comment Share on other sites More sharing options...
flex_manny Posted June 24, 2008 Share Posted June 24, 2008 The formula for compound interest is Compound interest F = P ( 1 + r/n)nt, where F = Final value P = Principal r = annual interest rate n = number of compounding periods per year t = number of years In your case p = 1000, n = 12, r = 7. Plug them all in Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.