# ALGEBRA

posted by .

Find the ending balance in an account that opens with \$3,180, earns 11.5% interest compounded monthly, and is held for 20 years. (Round your answer to the nearest cent.)
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 -

It 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 -

Thanks,drwls I see where I made a mistake with the 0.95 but where did the 240 come from.

## Respond to this Question

 First Name School Subject Your Answer

## Similar Questions

1. ### ALGEBRA

Find the amount of compound interest earned in an account that opens with \$27,000, earns 4.6% interest compounded daily, and is held for 25 years. Assume 360 days in a year. (Round your answer to the nearest cent.) I came up with \$85,264.94 …
2. ### algebra

Find the ending balance in an account that opens with \$6,000, earns 4.5% interest compounded quarterly, and is held for 10 years. (Round your answer to the nearest cent.)
3. ### ALGEBRA

Find the ending balance in an account that opens with \$3,560, earns 3.5% interest compounded monthly, and is held for 15 years. (Round your answer to the nearest cent.) =
4. ### ALGEBRA

Find the ending balance in an account that opens with \$5,000, earns 7.5% interest compounded quarterly, and is held for 20 years. (Round your answer to the nearest cent.)
5. ### ALGEBRA

Find the ending balance in an account that opens with \$5,000, earns 7.5% interest compounded quarterly, and is held for 20 years. (Round your answer to the nearest cent.) I had \$750.05
6. ### ALGEBRA

Find the ending balance in an account that opens with \$5,000, earns 7.5% interest compounded quarterly, and is held for 20 years. (Round your answer to the nearest cent.)
7. ### ALGEBRA

Find the ending balance in an account that opens with \$5,000, earns 7.5% interest compounded quarterly, and is held for 20 years. (Round your answer to the nearest cent.)
8. ### math

Find the ending balance in an account that opens with \$5,000, earns 2.5% interest compounded quarterly, and is held for 5 years. (Round your answer to the nearest cent.) \$ 1
9. ### accounting

Find the ending balance in an account that opens with \$9,000, earns 4.5% interest compounded quarterly, and is held for 5 years. (Round your answer to the nearest cent.)
10. ### math

Find the ending balance in an account that opens with \$6,000, earns 6.5% interest compounded quarterly, and is held for 20 years. (Round your answer to the nearest cent.)

More Similar Questions