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Given P = $8945, t= 5 yearsand r= 9% compounded monthly. Is the correct compound interest formula to calculate to the nearest cent to the value of a

Respuesta :

For this question, we use the following formula for compounded interest:

[tex]P=a(1+0.09)^{5\cdot12}[/tex]

Solving for a we get:

[tex]\begin{gathered} a=\frac{8945}{(1+0.09)^{60}} \\ a=\frac{8945}{(1.09)^{60}} \\ a=50.81 \end{gathered}[/tex]

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