Julianne wants to take a trip around the world. she plans to deposit $175 at the beginning of ach month into an investment with a 3.25% interest rate, compounded monthly. how much will she have in the account after 12 years?

Question

jdoe0001 · Answer

$\Large {
A=P\left(1+\frac{r}{n}\right)^{nt}
}
\ \quad \
A=\textit{current amount}\
P=\textit{original amount deposited}\to \$175\
r=rate\to 3.25\%\to \frac{3.25}{100}\to 0.0325\
n=\textit{times it compounds per year, 12 months per year}\to 12\
t=years\to 12
$