The formula for determining interest compounded monthly is A = P(1 + r over 12)12t, where A represents the amount invested after t years, P the principal invested, and r the interest rate. Jimmy invests $1,500 at an interest rate of 10% for 4 years, while Jenny invests $1,500 at an interest rate of 5% for 6 years. Determine the amount of return gained by Jimmy and Jenny. Can someone check my work?

Question

anonymous · Answer

1,500(1+.10/12)12*4  =  2234.03
1,500 (1+.05/12)12*6  = 28350.61

anonymous · Answer

Yea i got the same

anonymous · Answer

Really? Thanks :)

anonymous · Answer

yea good work, just remember the 12 in the exponent slot is the number of times the intrest is compounded in a 12 month period. So later they may say something like semi anualy which would change that to 2 and so on

anonymous · Answer

Okay! Thanks for the help :) I really appreciate it!