Question

$25000 invested at 7.2% interest compounded monthly. Find the amount of money in this account
after 2 years

Answer 1

Formula for compound interest is Money x (Interest rate/100)^Months

Answer 2

So 25,000 x 1.072^24

Answer 3

isnt it A=p(1 + r/n) ^ n*t

Answer 4

Yeah, that's the same

Answer 5

Not r/n though, r/100

Answer 6

ok so i got 25000(1+0.072/100)^100*2 ?

Answer 7

No, you should get 25000(1+7.2/100)^12*2

Answer 8

The formula is A=P(1+r/100)^n*t

Answer 9

why is it 100? what is that for

Answer 10

Just because multiplying by 0.072 is the same as finding 7.2%

Answer 11

Percent means out of 100.

Answer 12

well i got 115162 is that it?

Answer 13

or is it 132622

Answer 14

That's not what I got. Should be 25000x1.072^24 which is 132621.8

Answer 15

Yeah, the second one :)

Answer 16

hmm ok
thank you.

Answer 17

so what if the exact same thing happened only instead of 2 years its after 6 months?