To solve this problem, we will use the formula for compound interest:

A(t) = P(1 + r/n)^(nt)

Where:
A(t) is the amount of money accumulated after n years, including interest.
P is the principal amount (the initial amount of money)
r is the annual interest rate (in decimal)
n is the number of times that interest is compounded per year
t is the time the money is invested for in years

Given in the problem:
P = $120
r = 6% or 0.06 (in decimal form)
n = 12 (since the interest is compounded monthly)
t = 21 years

Substitute these values into the formula:

A(t) = 120(1 + 0.06/12)^(12*21)

Now, calculate the expression inside the parentheses:

1 + 0.06/12 = 1.005

So, the equation becomes:

A(t) = 120 * (1.005)^(12*21)

Now, calculate the exponent:

12*21 = 252

So, the equation becomes:

A(t) = 120 * (1.005)^252

Now, calculate the value of A(t):

A(t) ≈ $421.72

So, the amount of $120 invested at 6% interest compounded monthly would be worth approximately $421.72 after 21 years. Therefore, the answer is A.$421.72.

Question

To solve this problem, we will use the formula for compound interest:

A(t) = P(1 + r/n)^(nt)

Where:
A(t) is the amount of money accumulated after n years, including interest.
P is the principal amount (the initial amount of money)
r is the annual interest rate (in decimal)
n is the number of times that interest is compounded per year
t is the time the money is invested for in years

Given in the problem:
P = $120
r = 6% or 0.06 (in decimal form)
n = 12 (since the interest is compounded monthly)
t = 21 years

Substitute these values into the formula:

A(t) = 120(1 + 0.06/12)^(12*21)

Now, calculate the expression inside the parentheses:

1 + 0.06/12 = 1.005

So, the equation becomes:

A(t) = 120 * (1.005)^(12*21)

Now, calculate the exponent:

12*21 = 252

So, the equation becomes:

A(t) = 120 * (1.005)^252

Now, calculate the value of A(t):

A(t) ≈ $421.72

So, the amount of $120 invested at 6% interest compounded monthly would be worth approximately $421.72 after 21 years. Therefore, the answer is A.$421.72.

Knowee AI · Accepted Answer

To solve this problem, we will use the formula for compound interest:

A(t) = P(1 + r/n)^(nt)

Where:
A(t) is the amount of money accumulated after n years, including interest.
P is the principal amount (the initial amount of money)
r is the annual interest rate (in decimal)
n is the number of times that interest is compounded per year
t is the time the money is invested for in years

Given in the problem:
P = $120
r = 6% or 0.06 (in decimal form)
n = 12 (since the interest is compounded monthly)
t = 21 years

Substitute these values into the formula:

A(t) = 120(1 + 0.06/12)^(12*21)

Now, calculate the expression inside the parentheses:

1 + 0.06/12 = 1.005

So, the equation becomes:

A(t) = 120 * (1.005)^(12*21)

Now, calculate the exponent:

12*21 = 252

So, the equation becomes:

A(t) = 120 * (1.005)^252

Now, calculate the value of A(t):

A(t) ≈ $421.72

So, the amount of $120 invested at 6% interest compounded monthly would be worth approximately $421.72 after 21 years. Therefore, the answer is A.$421.72.

How much would $120 invested at 6% interest compounded monthly be worth after 21 years? Round your answer to the nearest cent.𝐴(𝑡)=𝑃(1+𝑟𝑛)𝑛𝑡A(t)=P(1+ nr ) nt A.$421.72B.$271.20C.$133.25D.$407.95SUBMITarrow_backPREVIOUS

Question

Solution

Similar Questions

Upgrade your grade with Knowee

How much would $120 invested at 6% interest compounded monthly be worth after 21 years? Round your answer to the nearest cent.𝐴(𝑡)=𝑃(1+𝑟𝑛)𝑛𝑡A(t)=P(1+ nr​ ) nt A.$421.72B.$271.20C.$133.25D.$407.95SUBMITarrow_backPREVIOUS

Question

Solution

Similar Questions

Upgrade your grade with Knowee

How much would $120 invested at 6% interest compounded monthly be worth after 21 years? Round your answer to the nearest cent.𝐴(𝑡)=𝑃(1+𝑟𝑛)𝑛𝑡A(t)=P(1+ nr ) nt A.$421.72B.$271.20C.$133.25D.$407.95SUBMITarrow_backPREVIOUS