Homework Help: Algebra 2

Posted by Anonymous on Wednesday, February 27, 2013 at 2:03pm.

How much money would you have in 4 years if you deposited $2500 in an account paying 5.5% annual interest, compounded monthly?

Algebra 2 - Henry, Thursday, February 28, 2013 at 8:52pm
P = Po(1+r)^n.

Po = $2500 = Initial deposit.

r = (5.5%/12)/100% = 0.004583 = Monthly
% rate expressed as a decimal.

n = 12Comp/yr * 4yrs = 48 Compounding
periods.

Plug the above values into the given Eq and get:

P = $3113.63.

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