Question
How much money would you have in 4 years if you deposited $2500 in an account paying 5.5% annual interest, compounded monthly?
Answers
Henry
P = Po(1+r)^n.
Po = $2500 = Initial deposit.
r = (5.5%/12)/100% = 0.004583 = Monthly
% rate expressed as a decimal.
n = 12Comp/yr * 4yrs = 48 Compounding
periods.
Plug the above values into the given Eq and get:
P = $3113.63.
Po = $2500 = Initial deposit.
r = (5.5%/12)/100% = 0.004583 = Monthly
% rate expressed as a decimal.
n = 12Comp/yr * 4yrs = 48 Compounding
periods.
Plug the above values into the given Eq and get:
P = $3113.63.