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vesna_86 [32]
3 years ago
6

Approximately how much money would Manny have if he invested $1,200 at an interest rate

Mathematics
1 answer:
quester [9]3 years ago
6 0

Answer:

$1,701.64

Step-by-step explanation:

(see attached for reference)

recall that for compound interest, the following formula applies:

A = P [1 + (r/n) ] ^ (nt), where

A = final amount (we are asked to find this)

P = Principal amount = $1,200

r = interest rate = 5% = 0.05

t = 7 years

n = 12

Substituting these into the equation,

A = 1200 [1 + (0.05/12) ] ^ [(12)(7)]

A =  $1,701.64

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