Math

posted by .

compound and interest Using the below values please calculate the amount accumulated (future value) *Initial principal=$2000 *Interest Rate=9% *Number of years 7 *Monthly compounding

  • Math -

    For 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)

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math-- Desperate for help!

    Find the amount in an account if $2000 is invested at 6.125%,compounded semi-anually,for 2 years. A. $2,256.49 B. $2,252.50 C. $2,324.89 D. $544,757.84 One of these is the correct answer. I am coming up with (D) 544,757.84 Can you …
  2. Math

    compound and interest Using the below values please calculate the amount accumulated (future value) *Initial principal=$2000 *Interest Rate=9% *Number of years 7 *Monthly compounding
  3. Math

    compound and interest Using the below values please calculate the amount accumulated (future value) *Initial principal=$2000 *Interest Rate=9% *Number of years 7 *Monthly compounding
  4. geometry

    Using the following values, calculate the amount accumulated (future value): Initial Principal = $9000 Interest Rate = 8% Number of years = 9 Monthly Compounding
  5. Kirr

    *solve execises by using compounded interest formula Principal $ 700 Time period 8years nominal rate (%) 1.5 Interest compounded monthly Compound amount ?
  6. math

    Find the total number of compounding periods and interest rate per period.  Princial: $700, time period :8yrs , nomial rate: 1.5%, interest compounding :monthly, copounding amount________, compound interest_______  * i need to figure …
  7. Math (Interest)

    If I was given an amount of money for 1 month, and I wanted to compound its interest monthly, which formula would I need to use?
  8. Business Math

    Solve the following by using the present value formula. Compound Amount- $700 Time Period(years)-8 years Nominal Rate (%)- 1.5 Interest Compounded monthly Compound Amount___________?
  9. efe

    find the formula for calculating compound interest. If Mr. John Chrystal invests $6,000 today (Present Value) at a compound interest of 9 percent, calculate the Future Value of the investment after 30 years using the compound interest …
  10. Math

    Find the accumulated amount A if the principal, P = $3700 is invested at the interest rate r = 7%/year for t = 12.5 years compounded semiannually. Round your answers to two decimal places. ​ a. The accumulated amount is $8544.01. …

More Similar Questions