Question

how much would $140 invested at 6% interest compounded monthly be worth after 15 years? Round your answer to the nearest cent. A(t)= P(1+r/n)^nt

Answer 1

P = $140 (the principal amount)

r = 6% per year (the annual interest rate)

n = 12 (the number of times the interest is compounded per year, since it is compounded monthly)

t = 15 years (the time period)

A(15) = $140(1 + 0.06/12)^(12*15)

A(15) = $140(1 + 0.005)^180

A(15) = $281.49