We have $10,000 to invest for 44 months. How much money will we have if we put the money into an account that has an annual interest rate of 5.5% and interest is compounded monthly?
A = p(1 + r/n)^nt p = principal r = rate, change to a decimal n = number of times it is compounded per year t = time in years A = 10,000(1 + .055/12)^(12*(44/12)) Since the time is in months and the formulas is in years, I put the (44/12) to represent the time. This will actually simplify to 44. A = 10,000(1 + .055/12)^(44) A = $ 12,228.77
