Mathematics: How much money is earned by investing $10,000 for 5 years and 3 months at 3 1/5% annual interest, compounded monthly? (i know how to do this but how do you put 5 years and 3 months into a formula and how do you add it up to make 525? )

Fraction into a decimal- just divide the top of the fraction by the bottom Decimal into Precent- multiply by 100 then move the decimal 2 places to the right...

How much money is earned by investing $10,000

Ответ:

dzaugmavericks9145

10.01.2022

Mathematics

$\$11,826.72$

Step-by-step explanation:

we know that

The compound interest formula is equal to

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

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

n is the number of times interest is compounded per year

in this problem we have

$P=\$10,000\\n=12$

$t=5\ years\ 3\ months=5+\frac{3}{12}=5.25\ years$

$r=3\frac{1}{5}\%=(3+\frac{1}{5})\%=3.2\%=3.2/100=0.032$

substitute in the formula above

$A=10,000(1+\frac{0.032}{12})^{12*5.25}$

$A=10,000(\frac{12.032}{12})^{63}$

$A=\$11,826.72$

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How much money is earned by investing $10,000 for 5 years and 3 months at 3 1/5% annual interest, compounded monthly?

(i know how to do this but how do you put "5 years and 3 months" into a formula and how do you add it up to make 525? )

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How much money is earned by investing $10,000 for 5 years and 3 months at 3 1/5% annual interest, compounded monthly? (i know how to do this but how do you put "5 years and 3 months" into a formula and how do you add it up to make 525? )

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How much money is earned by investing $10,000 for 5 years and 3 months at 3 1/5% annual interest, compounded monthly?

(i know how to do this but how do you put "5 years and 3 months" into a formula and how do you add it up to make 525? )