P -= Po(1+r)^n.
Po = $9000.
r = 0.08/12 = 0.00667/mo.
n = 12Comp./yr. * 5yrs. = 60 Compounding periods.
Congratulations! You were the 10th caller on the KMTH morning show and you just won $9,000.00. After you calm down, you decide to put the money into a bank account so that you will have even more money for a trip to Europe. Snurling Bank tells you that they will pay 8% per year compounded monthly. How much money will you have for your trip in 5 years?
a) $13,404.61
b) $13,411.61
c) $13,407.61
d) $13,408.61
e) $13,409.61
1 answer
1 answer