## Related questions with answers

Question

Use the appropriate compound interest formula to compute the balance in account after the stated period of time. $\$ 15,000$ is invested for $15$ years with an APR of $4.2 \%$ and monthly compounding.

Solution

VerifiedAnswered 2 years ago

Answered 2 years ago

Step 1

1 of 4The goal is to calculate the balance in an account for $15$ years that has $\$15000$ invested at an annual percentage rate of $4.2\%$ and monthly compounding.

To calculate the balance, apply the *Compound Interest Formula* for interest paid once a year:

$A=P\times \left(1+\dfrac{APR}{n}\right)^{nY}$

where

$A$ is the accumulated balance after $Y$ years. $P$ is the starting principal $APR$ is the annual percentage rate (as a decimal) $n$ is the number of compounding periods per year $Y$ is the number of years

## Create a free account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy

## Create a free account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy

## Recommended textbook solutions

#### Statistical Techniques in Business and Economics

15th Edition•ISBN: 9780073401805 (11 more)Douglas A. Lind, Samuel A. Wathen, William G. Marchal1,236 solutions

#### Using and Understanding Mathematics: A Quantitative Reasoning Approach

7th Edition•ISBN: 9780134705187 (3 more)Jeffrey O. Bennett, William L. Briggs3,437 solutions

#### Financial Algebra: Advanced Algebra with Financial Applications

2nd Edition•ISBN: 9781337271790Richard Sgroi, Robert Gerver3,016 solutions

## More related questions

1/4

1/7