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Mathematics 22 Online
OpenStudy (anonymous):

find the amount that results from each. $50 invested at 6% compounded monthly after a period of 3 years

OpenStudy (anonymous):

$59.83

OpenStudy (anonymous):

how did you set that up? does it change when it says compounded monthly or continuously or daily?

OpenStudy (anonymous):

Here is the formula, Amount = start(1 + rate/times per year)^(times per year * years)

OpenStudy (across):

To answer this question, you need to know the compound interest formula: \[A=P(1+r/n)^{nt}\] Where: A - Final Amount P - Principal Amount r - Annual nominal interest rate (as a decimal) n - number of times compounded yearly t - number of years Having this in mind, we set up our equation: \[A=50(1+0.06/12)^{36}=$59.83\]

OpenStudy (anonymous):

above is a good and correct answer

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