Urgent *WILL MEDAL*: James invested $5000 in a money market account that earns 10% interest compounded monthly.

Which equation can be used to find the balance in James's account at the end of 4 years?

Thanks :))

Question

Urgent *WILL MEDAL*: James invested $5000 in a money market account that earns 10% interest compounded monthly.

Which equation can be used to find the balance in James's account at the end of 4 years?

Thanks :))

anonymous · Answer

ok, so the formula of this equation is A=P(1+R/N)^nt

anonymous · Answer

A is the ending amount

anonymous · Answer

P is the amount invested

anonymous · Answer

r is the rate

anonymous · Answer

n is the number of compoundings per year

anonymous · Answer

t is total number of years

anonymous · Answer

If its monthly n=4

anonymous · Answer

now we substitute
A=5000(1+.1/4)^16

anonymous · Answer

1.25^16 is ~35.5 Then we multiply by 5000

anonymous · Answer

So around 177k. He made a really good investment lol ;)

anonymous · Answer

OH wait. I was wrong.

equation is A=5000(1+ .010/4)^16

anonymous · Answer

that would be around 1.17 x 5000

anonymous · Answer

Final answer is 5863. Good luck :)