> You invest $1,300 in an account with an annual interest rate of 2.5%, compounded monthly. How much money is in the accou

You invest $1,300 in an account with an annual interest rate of 2.5%, compounded monthly. How much money is in the accou

You invest $1,300 in an account with an annual interest rate of 2.5%, compounded monthly. How much money is in the accou

Posted at： 2014-12-05　
periodic (monthly) rate: 0.025 /12 = 0.00208

n = 10 yrs * 12 months per year = 120

FV = PV(1 + r)^n

FV = 1300(1.00208^120)

= 1300(1.28369)

= $1,668.79894, round to $1,668.80

1668.80

i get $1,668.799 not rounded yet
  • Previous： Why is my savings account growing?
  • Next：What is propriety trading?