PLEASE HELP WILL MEDAL (answer must be correct)

You put $5000 in a savings account which earns compound interest at a rate of .5% per month. If you don't make any deposits or withdrawls, how much will you have in your account in 30 years? Round your answer to the nearest whole cent.

A. $21,609.71
B. $5807.00
C. $22,324.85
D. $30,112.88

Question

PLEASE HELP WILL MEDAL (answer must be correct)

You put $5000 in a savings account which earns compound interest at a rate of .5% per month. If you don't make any deposits or withdrawls, how much will you have in your account in 30 years? Round your answer to the nearest whole cent.

 		A.	$21,609.71
 		B.	$5807.00
 		C.	$22,324.85
 		D.	$30,112.88

anonymous · Answer

D

anonymous · Answer

Thanks!

anonymous · Answer

So you want to use the compound interest formula
A(t) = a(1 + r/k) ^ k*t

anonymous · Answer

yaa but given monthly interest rate

anonymous · Answer

yes, so you would have 5000(1+.005/12)^12(30)

anonymous · Answer

0.05 is already monthly interest rate

anonymous · Answer

yes, so you plug in the interest rate in the formula to get the value

anonymous · Answer

yaa instead of 0.05/12 just take 0.05

anonymous · Answer

you are given .5% so that is why we would change it to a decimal and plug it in the formula

anonymous · Answer

sorry my mistake it is 0.005

anonymous · Answer

oh that is different