Question

Katelyn invested $2325 in a savings account which earns 3.45% interest compounded monthly. What will the account be worth in 7 years?

$2,959.07
$25,144.92
$2,372.20
$40,159.15

Answer 1

do you have your compounding formula ready?

Answer 2

@amistre64 that one is A = P (1 + r/n) ^ nt right?

Answer 3

yes, thats the perfect one to use

Answer 4

@amistre64 so what do I plug in? I am not good in math

Answer 5

even if we mess up and forgo the n parts, we are only 10 buck off ....

Answer 6

plugging in isnt math, its more like reading comprehension

Answer 7

lol im not good at the either

Answer 8

P is the amount you start with

r is the rate in decimal form

n is the number of compounding periods in a year

t is the number of years

Answer 9

forget n at the moment ... its really not worth it in this setup

Answer 10

okay so p= $2325 r= 3.45 and t= 7

Answer 11

yes, let r = .0345 unless your calculator does % stuff. i never could get that utton to do what it was spose to

Answer 12

Now it looks like A= 2325(1+.0345/n)^n*7

Answer 13

let n=1 or n=12; your choice .... but n=1 isnt going to be that far off

Answer 14

A=2325(1.0345)^7
right?

Answer 15

just for extra stuff to type ...

compare the results of 1 year

2325(1.0345) to 2325(1+.0345/12)

1.0345 : 1+.0345/12

1.0345 : 1.002875

1 : .9695

they are practically the same, almost a 1:1 ratio

Answer 16

yes

Answer 17

okay i got 2948.06 but that isn't an answer

Answer 18

youre not looking for THAT answer, your looking for the one thats closest to it ....

Answer 19

A is the closest to it

Answer 20

yes it is :) now if they had all been within a 10 dollar range, then we would have had to go more precise ... but as is the choices wernt really that picky to start with

Answer 21

Thank you so much!!

Answer 22

good luck