use the appropriate compound interest formula to compute the balance in the account after the stated period of time. 3000 dollars is invested for 19 years with an APR of 5% and monthly compounding. what is the balance after 19 years

Solution

u se t h e a pp ro p r ia t e co m p o u n d in t eres t f or m u l a t o co m p u t e t h e ba l an ce in t h e a cco u n t a f t er t h e s t a t e d p er i o d o f t im e . 3000 d o ll a rs i s in v es t e d f or 19 ye a rs w i t h an A PR o f 5% an d m o n t h l y co m p o u n d in g . w ha t i s t h e ba l an ce a f t er 19 ye a rs

Amount : 7741.83

Solution steps

Translate the problem into an equation:

A = 3000 (1 + \frac{0.05}{12})^{12 \cdot 19}

3000 (1 + \frac{0.05}{12})^{12 \cdot 19} = 7741.83393 \dots

Round to the nearest hundredth:

7741.83

Amount : 7741.83