Question

Jasmine parents invested $14,000 at 5% per year compounded monthly how much money will there be in an account after 12 years

Answer 1

Answer:

A=$25,141.99

Step-by-step explanation:

Compound interest formula is so:

A = $P(1+\frac{r}{n} )^{nt}$

A = Amount

P = Principal

r = interest rate in decimal form

n = number of times interest is compounded per t

t = time

First we identify our variables and what we are solving for

We are solving for A, so no rearrangement is necessary

$A=14000(1+\frac{0.05}{1})^{(1)(12)}$

Simplify

$A=14000(1+{0.05})^{12}$

$A=14000(1.05})^{12}$

for a more accurate answer round at the end

$A=14000(1.796)$

A=$25,141.99

Answer 2

Answer: $ 123,859.75

Step-by-step explanation:

you will want an initial investment of $ 14,000.00

to attain a future value of $ 123,859.75

at an interest rate of 5%

with monthly contributions of $ 500.00

for an investment period of 12 years