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Rudy Banks has won $5000 to attend university. If he invests the money in an account at 12% per annum, compounded monthly, how much ca
Question
Rudy Banks has won $5000 to attend university. If he invests the money in an
account at 12% per annum, compounded monthly, how much can he draw monthly
for the next 3 years?
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Mathematics
3 years
2021-07-17T03:39:37+00:00
2021-07-17T03:39:37+00:00 1 Answers
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Answers ( )
Answer:
$7153.84
General Formulas and Concepts:
Pre-Algebra
Order of Operations: BPEMDAS
Algebra I
Compounded Interest Rate Formula:![Rendered by QuickLaTeX.com \displaystyle A = P(1 + \frac{r}{n})^{nt}](https://documen.tv/wp-content/ql-cache/quicklatex.com-bc8324b00f258969f273f47361544d6d_l3.png)
Step-by-step explanation:
Step 1: Define
Identify variables
P = 5000
r = 12% = 0.12
n = 12
t = 3
Step 2: Find Interest