Raymond B. answered • 08/01/22
Tutor
5
(2)
Math, microeconomics or criminal justice
A = P(1+r/n)^nt
where n = number of times compounded per year
r= interest rate
t= years
P=starting amount
A=ending amount after t years
A= 2300(1+.0325/12)^12(11)
A=2300(1.002708333...)^132
use a calculator
A=$3,286.84 rounded off to nearest cent
had the problem said continously compounded, the investment
would have grown to slightly more
formula then would be
A=Pe^rt where e=about 2.71828
A=2300e^.0325(11)
A=$3,288.43
that's sort of a check on the answer, to see if you're in the right range
