Question

We have $10,000 to invest for 44 months. How much money will we have if we put the money into an account that has an annual interest rate of 5.5% and interest is compounded monthly?

Answer 1

A = p(1 + r/n)^nt
p = principal
r = rate, change to a decimal
n = number of times it is compounded per year
t = time in years
A = 10,000(1 + .055/12)^(12*(44/12))
Since the time is in months and the formulas is in years, I put the (44/12) to represent the time. This will actually simplify to 44.
A = 10,000(1 + .055/12)^(44)
A = $ 12,228.77