Exponential Functions

Question

If we invest $4,000.00 in an investment account paying 1% interest compounded monthly, how much will the account be worth in 7 years?
          A(t)=P(1+r/n)^nt.

The account in 7 years will be worth

Answer 1

Plug in the numbers...

 

A = 4000(1 + .01/12)^12(7)

 

.01/12 = 8.33 x 10^-4

 

add this to the number 1

 

raise this to the power of 84

 

multiply by 4000 to get answer.

 

A = 4289.91