In 2015 Tim has $300,000 invested in a retirement account that pays 5% interest compounded monthly. Give an equation that models the situation above.

Question

mathmale · Answer

Please look up the formula for "Amount," given "principal," annual interest rate, number of compounding periods per year, and length of time.

mathmale · Answer

A=P(  ???   )^( ?? )

marcelie · Answer

5/100 = .05

marcelie · Answer

thats your r= .05

mathmale · Answer

Please copy this down for later reference.  Believe me, Marcelie, you'll need it:

$$A=P(1+\frac{ r }{ n })^{nt}$$

mathmale · Answer

If you're unsure of how to use this equation, ask questions.

marcelie · Answer

yes indeed lol  i easily forget things D: