If you invest $4450 at 5.5% per annum compounded monthly, determine the value after 5 years 9 months.?

Question

I keep getting the wrong answer. Will someone please work this.

Thanks :-)

Answer 1

$6100.87 .

(The annual interest rate attached to your money is 5.5%. Since it is compounded 12 times a year, the interest rate at each compounding time is 5.5% ÷ 12 or 0.458333%.
Before we start, be sure to convert your interest rate at the time of compounding, 0.458333%, into a decimal by dividing it by 100, so 0.458333% becomes 0.00458333 for calculation purposes.)

At each compounding step above, the new principal can be found by applying this formula:

NewPrincipal = CurrentPrincipal × (1 + r)
where r is your interest rate at the time of compounding, in this case 0.458333% (or 0.00458333 in the calculations).

As an example, look at the first compounding step:

$4470.40=$4450.00 × (1 + 0.00458333).
And the second:

$4490.89=$4470.40 × (1 + 0.00458333).
In fact, the whole compound interest amount boils down to multiplying (1+r), or (1+0.00458333), times your original principal 69 times (5.75 years at 12 compouding(s) per year).

Mathematically though, this is equivalent to multiplying your orginial principal by the factor (1+0.00458333)^69.

If we do this, we'll get that your final amount is:


$4450.00 × (1+0.00458333)^69=$6100.87

FOR MORE PL. VISIT:
http://www.webmath.com/cgi-bin/compinterest.cgi?back=compinterest.html&principal=4450&interest=5.5&compound=12&desired_time=5.75

Answer 2

Use the formula

A = P(1+r/n)^(nt)

where P is the initial amount of $4450, r is the interest rate (in this case, 0.055), t is the time invested in years (in this case, 5.75), and n is the number of times interest is compounded per year (in this case, n=12).

For checking purposes, the answer I get with this formula is $6100.87.

Answer 3

$6100.87

.055/12 = .00458333. Thats the monthly rate

$4450 (1.00458333)^69 = $6100.87

Answer 4

4450*(1+55/100)^n

n = the number of ahums in the period 5 years and 9 months tus n is soixante-neuf

Answer 5

Unfortunately none of the above equations is mathematically correct, although the first one, which dates from the time of the abacus, is still used by many American banks and taught in many schools.

Regrettably, the American banks as a whole are among the most backward in the world.

Answer 6

value=4450[1+55/12000]^69
=4450[12055/12000]^69

Answer 7

The answer is $6100.87.

Answer 8

are you trying to get someone to do your homework for you???