To calculate the total amount of the investment at the end of the second month, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the total amount of the investment at the end of the second month
P = the initial principal amount (in this case, $70)
r = the annual interest rate (12% or 0.12 in decimal form)
n = the number of times that interest is compounded per year (monthly, so 12)
t = the number of years (2 months, so 2/12 or 1/6 in years)
Plugging in these values, we have:
A = 70(1 + 0.12/12)^(12*(1/6))
Simplifying,
A = 70(1 + 0.01)^(2)
A = 70(1.01)^2
A = 70(1.0201)
A ≈ $71.40
Therefore, the total amount of the investment at the end of the second month is approximately $71.40.
When 70 dollars is invested monthly with an annual compound interest rate of 12% compounded monthly what is the total amount of the investment at the end of the second month round the answer to two decimal places as needed
5 answers
wrong
I apologize for the mistake. Let's recalculate:
To calculate the total amount of the investment at the end of the second month, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the total amount of the investment at the end of the second month
P = the initial principal amount (in this case, $70)
r = the annual interest rate (12% or 0.12 in decimal form)
n = the number of times that interest is compounded per year (monthly, so 12)
t = the number of years (2 months, so 2/12 or 1/6 in years)
Plugging in these values, we have:
A = 70(1 + 0.12/12)^(12*(1/6))
Simplifying,
A = 70(1 + 0.01)^(2/6)
A = 70(1.01)^(1/3)
Using a calculator, we find that (1.01)^(1/3) is approximately 1.003333.
A ≈ 70 * 1.003333
A ≈ $70.23
Therefore, the total amount of the investment at the end of the second month is approximately $70.23.
To calculate the total amount of the investment at the end of the second month, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the total amount of the investment at the end of the second month
P = the initial principal amount (in this case, $70)
r = the annual interest rate (12% or 0.12 in decimal form)
n = the number of times that interest is compounded per year (monthly, so 12)
t = the number of years (2 months, so 2/12 or 1/6 in years)
Plugging in these values, we have:
A = 70(1 + 0.12/12)^(12*(1/6))
Simplifying,
A = 70(1 + 0.01)^(2/6)
A = 70(1.01)^(1/3)
Using a calculator, we find that (1.01)^(1/3) is approximately 1.003333.
A ≈ 70 * 1.003333
A ≈ $70.23
Therefore, the total amount of the investment at the end of the second month is approximately $70.23.
that's wrong
Apologies for the mistake. Let's recalculate correctly:
To calculate the total amount of the investment at the end of the second month, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the total amount of the investment at the end of the second month
P = the initial principal amount (in this case, $70)
r = the annual interest rate (12% or 0.12 in decimal form)
n = the number of times that interest is compounded per year (monthly, so 12)
t = the number of years (2 months, so 2/12 or 1/6 in years)
Plugging in these values, we have:
A = 70(1 + 0.12/12)^(12*(1/6))
Simplifying,
A = 70(1 + 0.01)^(2/12)
A = 70(1.01)^(1/6)
Using a calculator, we find that (1.01)^(1/6) is approximately 1.001667.
A ≈ 70 * 1.001667
A ≈ $70.12
Therefore, the total amount of the investment at the end of the second month is approximately $70.12.
To calculate the total amount of the investment at the end of the second month, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the total amount of the investment at the end of the second month
P = the initial principal amount (in this case, $70)
r = the annual interest rate (12% or 0.12 in decimal form)
n = the number of times that interest is compounded per year (monthly, so 12)
t = the number of years (2 months, so 2/12 or 1/6 in years)
Plugging in these values, we have:
A = 70(1 + 0.12/12)^(12*(1/6))
Simplifying,
A = 70(1 + 0.01)^(2/12)
A = 70(1.01)^(1/6)
Using a calculator, we find that (1.01)^(1/6) is approximately 1.001667.
A ≈ 70 * 1.001667
A ≈ $70.12
Therefore, the total amount of the investment at the end of the second month is approximately $70.12.
2 answers