Question
Find the amount if $600 is invested at 14% compounded monthly for 15 months.
I don't understand how to set this problem up.
I don't understand how to set this problem up.
Answers
Reiny
basic compound interest formula
Amount = principal(1+i)^n, where i is the periodic interest rate, and n is the number of interest periods
i = .14/12
n = 15
amount = 600(1 + .14/2)^15
I get $714.02
Amount = principal(1+i)^n, where i is the periodic interest rate, and n is the number of interest periods
i = .14/12
n = 15
amount = 600(1 + .14/2)^15
I get $714.02