Question

Find the amount if $900 is invested at 15% compounded monthly for 15 months.

Answer 1

hmm how many "years" are in 15months?

Answer 2

1 year 3 months

Answer 3

well.. yes... thus \(\bf 1\frac{1}{4}\to 1.25\ years\)

Answer 4

\(\bf A=P\left(1+\frac{r}{n}\right)^{nt}
\\ \quad \\
A=\textit{current amount}\\
P=\textit{original amount deposited}\to \$900\\
r=rate\to 15\%\to \frac{15}{100}\to 0.15\\
n=\textit{times it compounds per year, monthly thus}\to 12\\
t=years\to 1.25
\\ \quad \\
A=900\left(1+\frac{0.15}{15}\right)^{15\cdot 1.25}\)

Answer 5

@jdoe0001 , n=12
\[A = 900(1+ \frac{.15}{12})^{12*1.25}\]

Answer 6

A=1084.346

Answer 7

Thank you to you both for helping me figure out the formula.

Answer 8

ohh shoot.. got a typo yeahh yes hehe \(\bf A=900\left(1+\frac{0.15}{12}\right)^{15\cdot 1.25}\)

Answer 9

actually \(\bf A=900\left(1+\frac{0.15}{12}\right)^{12\cdot 1.25}\)

Answer 10

Thank you!

Answer 11

yw