how do you Find the value of $950 invested at 4.5% with interest compounded monthly for 5 years.?

Question

Find the value of $950 invested at 4.5% with interest compounded monthly for 5 years.
I think you use this formula A =Pe^rt

Answer 1

....for 2 points ^^....

A = value
P = principal
e = what'll happen w/ principal after 1 period(interest compound), in this case it'll be (the principal itself + interest) in percent
r = number of compounding per year, yearly=1, monthly=12, daily(??)=365, etc..
t = time (in years)

P = $950
interest = 4.5% (per year) = (4,5/12) % per month
__because the interest compounded monthly so the interest must be divide per month
e = 100% + (4,5/12)% = 1+ 0.00375 = 1.00375
r = 12
t = 5

then plug it in.

....done!
hope this not wrong..

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

Value = $950 * (1+.045/12)^60

Value equals principal times the quantity (one plus one-twelfth the annual interest rate) raised to the power of the number of months.

Answer 4

heres a formula:

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

P is the amount so $950

r is the annual interest rate which is 4.5%

n is the number of compoundings per year so you want monthly so that is 12

and then t is the number of years so 5

then plug it in and waaala! your answer =]

Answer 5

http://www.bankrate.com/brm/calc/cdc/CertDeposit.asp

$1189