Problema Solution

b. Compounded interest-An initial deposit of $1,000 earns 9% interest, compounded monthly. How much will be in the account in 4 1/2 years? Thank you very much for your assistance.

Answer provided by our tutors

Amount A=P (1+r/n)nt

=1000(1+0.09/12)54

=1000*1.007554

=1000*1.497

=1497

This will be the amount after 4 and half yrs