Asked by Courtnie
How much interest will be gained on a
$3700 investment invested at 5.6% per year, compounded monthly for 3 years?
$3700 investment invested at 5.6% per year, compounded monthly for 3 years?
Answers
Answered by
Henry
P = Po(1+r)^n
r = (5.6%)/12)/100% = 0.00467 = Monthly % rate expressed as a decimal.
n = 12comp/yr. * 3yrs. = 36 Compounding
periods.
P = 3700(1.00467)^36 = $4375.68.
Int. = P-Po = 4375.68-3700 = $675.68
r = (5.6%)/12)/100% = 0.00467 = Monthly % rate expressed as a decimal.
n = 12comp/yr. * 3yrs. = 36 Compounding
periods.
P = 3700(1.00467)^36 = $4375.68.
Int. = P-Po = 4375.68-3700 = $675.68