Sunday

January 25, 2015

January 25, 2015

Posted by **George** on Wednesday, April 13, 2011 at 10:37pm.

- Math -
**MathMate**, Wednesday, April 13, 2011 at 11:37pmFor monthly compounding (as opposed to annual), we need to calculate two things:

1. the monthly compounding interest:

annual interest/12=9%/12=0.75%=0.0075

2. the number of periods to cover 7 years

= 7*12 =84 (months)

The future value

= Principal * (1+interest)^periods

= 2000*1.0075^84

= $3746.40

(compare to simple interest

2000*(1+0.09*7)= $3260 < $3746, OK)

**Answer this Question**

**Related Questions**

Math - compound and interest Using the below values please calculate the amount...

Math - compound and interest Using the below values please calculate the amount...

geometry - Using the following values, calculate the amount accumulated (future ...

math - Find the total number of compounding periods and interest rate per period...

Math-- Desperate for help! - Find the amount in an account if $2000 is invested ...

Kirr - *solve execises by using compounded interest formula Principal $ 700 ...

Compound math - (Future Value) Suppose you invest $8000 into an account that ...

Consumer math !!!! please check - Determine the total in Dexter's account after...

algebra - A grandmother is looking for a plan to finance her new grandchild’s ...

buissness math - Determine the total in Dexter's account after the second month ...