Question

An initial deposit of $1400 earns 11% interest, compounded monthly. How much will be in the account in 3.5 years

Answer 1

Use the formula A = p(1 + r/n)^(nt).

Here is the set up:

You want to solve for A.

A = 1400[1 + (0.11)/(12)]^(12)(3.5)

Plug into calculator to find the value of A.

A = money in the account after 3.5 years.