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?

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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?

Solution:

4.5 years = 54 months

so the result = 1000* (1+9%)^54 = $104,961.71