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Posted by **MONICA** on Wednesday, November 23, 2011 at 12:13pm.

B=p(12+r)^n

B=3,180(12+0.95)^20

B=1,759.52

Is this correct if not, can someone help me with the steps.

- ALGEBRA -
**drwls**, Wednesday, November 23, 2011 at 12:35pmIt is not correct. Why would you end up with less money after 20 years of earning interest? True, our banks are ripping us off, but they aren't THAT bad.

Your starting equation is wrong. So are your later calculations. Where did the 0.95 come from?

With monthly compounding 240 times,

B = P*[1 + (r/12)]^240

= 3180*[1.009583333]^240

= $ 31,372.45

- ALGEBRA -
**MONICA**, Wednesday, November 23, 2011 at 1:44pmThanks,drwls I see where I made a mistake with the 0.95 but where did the 240 come from.

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