1. ## Exponential Functions- Finance

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! 2. $A = A_0\left(1 + \frac{r}{n}\right)^{nt}$ $A$ = balance of the account at any time $t$ in years $A_0$ = initial deposit $r$ = annual interest rate as a decimal $n$ = number of compounding periods per year 3. 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

4. Originally Posted by gnarlycarly227
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?
compounded monthly ... n = 12

5. Originally Posted by gnarlycarly227
A= 1000 (1 + (.04/4) ^ (4 x 5)
A = 1,000

Since you don't say or show what you're doing between the first and second lines above, we can't know what you might be doing wrong. But $1.01^{20}$ should not be evaluating in your calculator to "1"!