If you invested 5,250 dollars at an annual rate of 6.64% compounded monthly, determine the value of your investment after 11 years and 3 months. Your answer should be accurate to the nearest cent.
Pt = Po(1+r)^n.
r = 6.64% / 12mo = 0.5533% = 0.00553 =
Monthly % rate expressed as a decimal.
T = 11yrs * 12mo/yr + 3mo. = 135 months
= Length of investment.
n=135mo * 1comp./mo. = 135 compounding
periods.
Pt = $5250(1.005533)^135 = $11,058.16.