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How much money would Manny have if he invested $1,200 at an interest rate of 5% for 7 years compounded monthly (12 times a year)?



Answer :

Manny will have $1,701.64.

let , P = $1,200 the principal invested

r = 0.05 or 5% annual interest rate

t = 7 years

n = 12*t = 12*7 = 84 compounding periods

A = future value

A = P(1 + r/12)^n  ......(compound interest)

A = 1200(1 + 0.05/12)^84

A = $1,701.64

Manny will have $1,701.64.

learn more about compound interest here:

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