= balance of the account at any time in years
= initial deposit
= annual interest rate as a decimal
= number of compounding periods per year
Determine the amount of money in a savings accounts that provides an annual rate of 4% compounded monthly if the initial investment is $1,000 and the money is left in the account for 5 years.
Can somebody show me how to solve this problem step by step please?
Thank you SO MUCH!
i keep doing it, but i have an answer sheet and i keep getting the answers wrong! the answer sheet says the answer is $1221.00, but here's what i keep doing:
A= P ( 1 + r/n) ^ nt
A= 1000 (1 + (.04/4) ^ (4 x 5)
A = 1,000
What am I doing wrong? Can somebody please help?