# math

You have deposited 1000\$ in your saving account with an anual interst rate of 4 percent compund monthly. How much money are you going to have in your account after six months.

Use A=P*(1+r)^6
r=.04/12=.01/3, P=1000

IS THE ANSWEAR 5610.23

No, if the annual interest rate is 4% then the answer should be close to 1040.
If you use A=P*(1+r)^6 with r=(.04)/12 = .033333 and P=1000 you shouldn't get

1. 👍
2. 👎
3. 👁

## Similar Questions

1. ### ECON-HELP!!

1. In the Country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate? 2.

2. ### math

How much must be deposited today into the following account in order to have \$ 25,000 in 8 years for a down payment on a​ house? Assume no additional deposits are made. An account with annual compounding and an APR of 5​%

3. ### differential equation

If P(t) is the amount of dollars in a savings bank account that pays a yearly interest rate of r% compounded continuously ,then dP/dt=(r/100)(P) , t in years . Assume the interest is 5% annually ,P(0)=\$1000 ,and no monies are

4. ### Calc

A person deposits money into a retirement account, which pays 7% interest compounded continuously, at a rate of \$1000 per year for 20 years. Calculate: a. The balance of the account at the end of 20 years b. the amount of money

1. ### mathematics

Write each answer in polynomial in simplest form Jack deposited some money in his savings account in September. In October he deposited twice as much as in September,and in November he deposited one-half as much as in September.

2. ### Math

18. Kim deposited \$1422 in a savings account. How much would she have in the account after 5 years at an annual simple interest rate of 3%.

3. ### finance

14. Assume Julian has a choice between two deposit accounts. Account A has an annual percentage rate of 7.55 percent but with interest compounded monthly. Account B has an annual percentage rate of 7.45 percent with interest

4. ### algebra

A total of \$6200 is deposited into two simple interest accounts. On one account the annual simple interest rate is 2%, and on the second account the annual simple interest rate is 4%. The amount of interest earned for 1 year was

1. ### math

find the effectivee rate correspoding to 3% compounded quarterly The formula for effective rate I found is (1+ i/n)^n - 1 where i is the annual rate as a decimal and n is the number of periods. Here i=.03 so the effective rate is

2. ### math

A sum of money,X was deposited in a saving account at 10 percent compounded daily on 25 july 1993. on 13 august 1993, rm600 was withdrawn and the balance as on 31 december 1993 was RM 8900.calculate the value of X using exact time

3. ### math

Samantha opened a savings account and deposited some money into the account. The account pays an annual simple interest rate of 5%. After 9 years, the interest earned on the account was \$1,800. How much money did Samantha deposit

4. ### Corporate Finance

Jason's opportunity cost rate is 8 percent compounded annually. How much must he deposit in an account today if he wants to receive \$5,400 at the end of each of the next 10 years? Use a financial calculator to determine the amount