Tom Invested $7,000 at 6.5% interest compounded monthly. How much will be in this account after 18 months?

1 answer

P = Po * (1+r)^n

r = (6.5%/12)/100% = 0.00542 = Monthly
% rate expressed as a decimal.

n = 1Comp./mo * 18mo = 18 Compounding
periods.

Solve for P.