if I invest 15,000 to an account at 2.25% compounded monthly, how much money will I have in 5 years?

Question

this is based on prime interest rate of 3.25% - 1%.

Answer 1

A = P(1 + r/n)^nt

 

Where:

A = the final amount

P = the initial investment = $15,000

r = the annual interest rate expressed as a decimal = 2.25% = 0.0225

n = the number of compoundings per year = monthly = 12

t = years = 5

 

A = ($15,000)*(1 + (0.0225)/12)^12*5

 

A = ($15,000)*(1.001875)⁶⁰

 

Can you finish it from here?